Textile mills having invested over PKR 1.5 billion in gas powered electricity generation projects are disgusted by the refusal of the utility to provide gas after the Prime Minister imposed ban on new connections till October.
At least nine member mills of All Pakistan Textile Mills Association are dismayed as they are paying millions in mark up while their power plants remain inoperative because the SNGPL has interpreted the ban imposed by the Prime Minister as applicable to already sanctioned gas load as well.
Mr Omar Nazar of Hasan Limited said that “I invested over PKR 375 million on a gas run power generation project after my load was approved by SNGPL. He paid PKR 47.32 million to SNGPL for laying down pipeline from its main gas source to the mill.
He said now that his power generators worth PKR 338 million have been installed, the SNGPL authorities have refused to honor the commitment they made while sanctioning gas load of 1.54 million cubic feet per day to the mill. I am paying PKR 350,000 per day as interest on the bank loan obtained for the installed but inoperative project.
M Seth Akber Shaiekh of Acro Spinning and Weaving Mills Limited said that he arranged investment for the proposed project. I deposited PKR 85 million with SNGPL to lay down a 22 kilometer dedicated gas pipeline for the power project last November.
He said that the laying of pipeline was delayed on one pretext or the other including the claim of SNGPL that required bends for pipeline were not available. Why did they ask for the money when materials required were not available?” He said now that the pipeline has been laid and generators installed the SNGPL has expressed inability to provide gas until the ban imposed by the PM is lifted. SNGPL has compromised the sanctity of legal agreement it entered with his mill. The PM’s directive cannot be applied retrospectively.
The other mills that have completed their gas generation projects and have got gas pipelines laid up to their premises include Mehmood Textile Mills Limited with sanctioned load of 1.60 million cubic feet per day pipeline cost of PKR 85 million and equipment cost of PKR 120 million. Hussain Mills Limited has made cumulative investment of PKR 90 million on approved gas supply of 1 million cubic feet per day, Ahmad Fine Textile Mills Limited Rs255 million on 1 mmcfd sanction gas and Shah Taj Textile Limited over PKR 200 million on sanction gas of 1 million cubic feet per day.
(Sourced from www.thenews.com.pk)
