LPG Industries chief says over Rs80 billion losses inflicted from JJVL closure
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KARACHI: LPG Industries Association Chairman Irfan Khokhar, while talking to a group of reporters recently, stated that former Prime Minister Zafarullah Jamali laid the foundation stone of Asia's largest LPG plant on 16 March 2004 and the then President General Musharraf inaugurated the JJVL in January 31, 2005. In just 15 years of continuous operation, the government exchequer collected over 20 billion rupees in terms of taxes and duties.
He said that gas supply to JJVL was not restored by SSGC despite the recommendations of the ECC Committee on August 2, 2020 and instructions from Director General LG Dr. Nawaz Ahmed Virk, Ministry of Petroleum on October 1, 2021. The Jamshoro plant was set up at a cost of Rs 40 billion with 50% external investment. It was due to the JJVL plant LPG and NGL of billions of rupees was saved, he said, adding that the processed gases was later used to meet the energy needs of remote and mountainous areas of Pakistan (where natural gas pipelines do not exist) and NGLs were sold abroad. JJVL has not only benefited SSGC but also added billions of rupees to the government exchequer. Over 5,000 people got employment at the JVL. He highlighted that due to the agreement between SSGC and JJVL from March 2005 to December 3, 2013, SSGC earned a profit of Rs.20.859 billion in royalty and Rs.18.908 billion in gas shrinkage, fuel and transportation. The total profit stood at Rs 39.767 billion.
Since JJVL became operational till June 2020, a total of 1.720 thousand metric tons of LPG and 6.12 thousand metric tons of NGL have been produced, from which payments of about Rs.85 billion have been made to the state-owned company SSGC, Khokhar highlighted, adding that in just 15 years from 2005 to the closure of JJVL in June 2020, the government exchequer increased by around Rs 20 billion in taxes and duties alone. If calculated the losses dueto the JJVL closure it amounts to Rs 80.85 in rough figures. Mr Khokhar stressed.
Published in The Daily National Courier, November, 15 2022
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