PSM incurring Rs60-70m loss daily, NA told

The News 21 Sept 2013 ISLAMABAD: Minister for Industries and Production Ghulam Murtaza Khan Jatoi on Friday informed the National Assembly that Pakistan Steel Mills (PSM) was incurring a loss of Rs60-70 million a day. Responding to a question, the minister said that four bailout packages of around Rs40 billion had been given to the steel mills from 2008 to 2012, while it had borne a loss of Rs86 billion during the same period. He said that the suggestion to sell 25 percent shares of the mills was under consideration and the government had nothing to do with its putting on the privatisation list as it was already there. He said through the approval of the Economic Coordination Committee (ECC), Rs3 billion was issued for the steel mills so that pending salaries were given to the employees and needs of the entity till November this year were catered to. Meanwhile, the Kalabagh Dam once again made waves in the NA but the government played down the issue saying that it would not take any step which might harm the national harmony. The issue was brought up when PkMAP chief Mehmood Khan Achackzai, on a point of order during the Question Hour, called for the need to put the controversial dam in the list of projects that the government planned. “I did not understand why this dam is not mentioned in the list,” he questioned the government. In reply, State Minister for Water and Power Abid Sher Ali said the government would not take any step which might harm national harmony. He said Kalabagh Dam was a national project which required a consensus. “I can assure the House that no project, including Kalabagh Dam, can be initiated without national consensus. This project is only mentioned in the list of those which were planned but no decision was taken on them,” he said. He said the federal government allocated Rs103,715.387 million for Sindh and Balochistan for water and irrigation projects during the last five years. He said in Balochistan, 76 percent work had been completed on Katchhi Canal while 83 percent work on RBOD-3 had also been completed, which would meet the water requirements of the province. On Naulang, the state minister said it would produce 4.4MW electricity while water would not be wasted as Wapda was working to develop a water recycling system. He said this water would be used for irrigation and drinking purposes. Abid said there was a Russian proposal regarding purchase of 5,000 MW electricity and government would consider every project to include cheap electricity in the system for the development of the country. He said the government was also committed to converting thermal power plants into coal based plants, which would produce cheap electricity. He said this conversion would be completed in two and a half years.He said that the cost of electricity produce through coal power plant would be 10-11 rupees per unit whereas thermal power plants were producing each unit for 21 to 22 rupees.