ECC nods local gas supply to two urea plants

ISLAMABAD: Economic Coordination Committee (ECC) of the Cabinet on Wednesday allowed supply of local gas to two urea manufacturers and gave its go-ahead to retooled Drawback of Local Taxes Scheme (DLTS) for five fiscal years.

Federal Minister for Finance and Revenue Shaukat Tarin presided over the ECC meeting, which, among others was attended by Federal Minister for Planning, Development & Special Initiatives Asad Umar, Federal Minister for National Food Security and Research Syed Fakhar Imam, Adviser to PM on Commerce and Investment, Abdul Razak Dawood, federal secretaries, Governor SBP, Chairman Planning Commission, and other senior officials.

According to a statement issued by the finance ministry, the summary related to revised/rationalised DLTS for 2021-26 was presented by the Ministry of Commerce before the cabinet committee.

The scheme would be subject to quarterly/periodic reviews to gauge its impact on export performance of sectors as well as exporting firms.

The estimated financial impact will be Rs79.27 billion for FY 2021-22; however, actual claims till June 30, 2022 are estimated to be around 50 billion.

Meanwhile, the Ministry of Industries and Production submitted a summary regarding the operation of Fatima Fertilizer (Sheikhupura Plant) and Agritech.

The committee also approved the proposal for provision of indigenous gas to two SNGPL-based Urea plants latest by March 31, 2022, saving funds to be utilised on provision of RLNG to both these plants, and ensuring their smooth operations throughout the year.

The ECC further directed the authorities to expedite the process of shifting the plants on system gas within one month.

The ECC also green lighted a technical supplementary grant of Rs16 billion for the payment of SNGPL dues for the month of February and expected claims for the remaining months of March, April, and May during the CFY2021-22.

The Ministry of Industries and Production submitted another summary on provision of funds to Heavy Electrical Complex (HEC) to pay liabilities on account of markup to Bank of Khyber, as per the statement.

The committee okayed Rs23.309 million as markup for the period of October 2021 to March 2022.

The ECC also approved supplementary grants including Rs500 million in favour of the Ministry of Federal Education and Professional Training for National Commission for Human Development (NCHD), Rs681.046 million in favour of Ministry of Housing and Works and Rs116.467 million in favour of Interior Division.