Dec 23 , 2015
News
Offer to Sindh govt to take over PSM intact, minister tells Senate
ISLAMABAD: Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi told the Senate on Tuesday the offer to the government of Sindh to take over Pakistan Steel Mills was still there, including its land.
He was winding up debate on an adjournment motion moved by the PPP’s Taj Haider ‘regarding the government’s announcement that Sui Southern Gas Company’s dues amounting to Rs37 billion against the PSM would be settled by transferring its land to the gas company, which is violation of Article 274 of the Constitution’.
The minister clarified that it was merely a proposal so far that a portion of the mills’ land be acquired by the gas company as per the market rate to clear Rs35 billion bill, outstanding against the mills. The proposal was floated by the gas company.
He justified suspension of gas supply to the mills, as its gas bill had reached over Rs35 billion, whereas the gas company’s own equity was Rs18 billion and hence the situation posed a threat to the mills as well as the gas company. In order to rescue the company, it was decided to stop gas supply to the mills instead of shifting the burden to the consumers. He disputed Taj Haider’s claim that the mills had bought land from the Sindh government and claimed it was purchased by the mills from private parties.
Abbasi told the House that gas was being supplied to the mills at the minimum level because of its inability to pay the bills.
In a meeting held in September, the company had asked the mills to pay the bill of Rs60 million for September and that onward, each month advance payment would be made by it. But the mills did not pay. He said that the mills made no payment of gas charges since April this year.
The minister pointed out that Pakistan Steel which earned a profit of Rs34 billion from 1985 to 2008, suffered staggering losses of Rs104 billion during five years of the PPP government.
Earlier, Taj Haider alleged that the government was after every key government entity and charged that gas supply to the mills was made only to destroy it and so that its land could be seized for vested interests.
He claimed it was decided at the Economic Coordination Committee meeting that the late payment surcharge to the tune of Rs19 billion would be waived off and the remaining Rs16 billion would be paid in instalments after two years. The mills touched production level of 65 in June 10 and on June 11, gas supply was disconnected to it. Haider alleged that strong lobby was influencing the government policies and wanted to make Pakistan an import-oriented country, destroying its industry.
Courtesy www.thenews.com.pk