Industry minister proposes package to cushion impact of outages
Iran’s Minister of Industry, Mine, and Trade Mohammad Atabak introduced a special support package aimed at mitigating the impact of electricity and gas outages on industries.
According to the minister, the proposal, which seeks to address energy shortages and their effects on production, is expected to be approved and implemented soon, Tasnim News Agency reported.
In recent weeks, Atabak has taken significant steps to persuade the government to reduce the adverse effects of power and gas shortages, as well as diesel insufficiency, on industrial output.
His efforts have reportedly convinced key government officials to back the proposed energy imbalance compensation plan for industries.
According to reports from government commissions, the package has received the support of President Masoud Pezeshkian and is set to be approved and announced shortly.
The development comes against the backdrop of significant energy challenges facing Iran’s industrial sector in recent years as these challenges have not only slowed industrial production but also impacted Iran’s export revenues and economic stability, particularly in non-oil sectors.
The government has set ambitious goals for economic growth, including Leader Ayatollah Khamenei’s call for a “Production Leap with Public Participation” in the current Iranian year. The government has emphasized the critical role of industries like petrochemicals, steel, and cement in achieving these objectives.
In response to these challenges, the Ministry of Industry, Mine, and Trade has sought to implement measures to safeguard industrial operations.
Earlier initiatives included prioritizing energy allocation to strategic industries and encouraging private-sector partnerships to expand infrastructure capacity. The newly proposed support package reflects a more comprehensive approach, addressing not only immediate financial losses but also the structural issues undermining the industrial sector’s resilience.
In a report presented to the government, Atabak revealed that the electricity supplied to industries in the first half of this year dropped by 40% compared to the same period last year. Consequently, production downtime increased from 14% last year to 22% this year.