Excise officials block urea leaving Engro’s plant

Company trying to engage with govt to resolve issue amicably.


Farhan Zaheer November 01, 2011

KARACHI:


Excise department officials on Monday night reached Engro Fertilizer Plant at Deharki and informed management that they have verbal orders not to allow any consignment to leave the plant.


Engro on Tuesday wrote a letter to Karachi Stock Exchange (KSE) in which it informed KSE management about the development and said that the company is trying to contact the government on the issue.

“This action is clearly illegal as no excise duty is payable on urea. The company is however trying to engage with the government to resolve the issue amicably,” the letter said.

The company says that government is not fulfilling its commitment to provide 100 mmcfd gas to its new plant at Deharki which has forced the company to raise urea price. The government says it cannot provide gas to industries owing to gas shortage in the country.

Engro Fertilizer increased the price of urea by Rs400 per bag to Rs1980 per bag from October 31. Federal Minister for Petroleum Dr Asim Hussain in Karachi recently said that government will challenge the Sindh High court decision in which it asked government to provide 100 mmcfd gas to Engro Daharki plant.

Published in The Express Tribune, November 2nd, 2011.

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