Four-month compensatory production plan introduced by gov’t
The Ministry of Industry, Mine, and Trade introduced a four-month compensatory production plan to address energy shortages and challenges faced by manufacturers and producers.
In recent years, energy imbalances—stemming from neglect in developing energy infrastructure, outdated systems, inefficient subsidy policies, and poor energy resource management—have caused irreparable damage to production across various industrial sectors, including petrochemicals, steel, copper, aluminum, and others, IRNA wrote.
Power and gas outages have intensified annually, with producers bearing the brunt of the losses. These imbalances have not only forced the closure of some small factories and left workers partially employed but have also impacted exports and foreign currency earnings.
To address these issues, the Ministry of Industry, Mine, and Trade has prepared the compensatory production plan for manufacturers. Ebrahim Sheikh, the deputy minister of public industries, said that the plan aims to offset production losses.
He added that under the plan, continuous gas and electricity supply will be ensured from early March to late June, allowing producers to compensate for lost production.
Sheikh highlighted supportive measures and incentives for manufacturers, including a minimum 6-month grace period for financial obligations such as tax payments, utility bills, and insurance premiums.
He also noted the establishment of streamlined customs procedures to expedite the clearance of production components and parts, as well as the allocation of foreign currency for raw materials and production inputs.
Sheikh mentioned a review and increase in diesel fuel quotas for production units in line with the 2025 production plan, with larger quotas allocated through the SADAF system for applicants in various provinces.
He emphasized that supporting the purchase of diesel generators, maximizing raw material production in key industries (petrochemicals, steel, copper, aluminum, etc.), and ensuring adequate financial resources are critical components of the compensatory package.
The deputy minister also reported fair wage payments to workers, stating that employers in workshops and production facilities are providing competitive wages to maintain workforce motivation during both regular and holiday operations.
He added that continuous production and maximizing capacity through three-shift operations will be supported over the four-month period.
Alongside the support package, experts have proposed solutions to address energy imbalances, including requiring manufacturers to establish solar power plants to partially meet their electricity and gas needs.
Additionally, adopting modern technologies, investing in industrial modernization, and generating energy from solar and wind power plants could significantly reduce energy imbalances in the short term.