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Industrialists estimate Rs10bn production losses each day
Javed Mirza
Friday, November 25, 2011
KARACHI: Crippling power outages of up to 12 hours in the industrial zones of Karachi, which is causing an estimated production loss of Rs10 billion a day, may not only jeopardised countrys export but governments revenues as well, leading industrialists said on Thursday.
The Karachi Electric Supply Company (KESC), on the other hand, has its own reasons for resorting to power cuts in the industrial zones. It also refutes business communitys claims and alleges that businesses are stealing gas in violation of the Gas Policy 2005.
The seven industrial zones of Karachi are facing 12-hour load shedding a day causing production losses to the tune of Rs10 billion, said Mian Zahid Hussain, a prominent business leader. If the situation continues like this for another month, it is feared that the country will fall short of meeting the export target by around 20percent, he said. Mian Zahid, however, said that Governor of Sindh, Dr. Ishratul Ebad, has finally intervened and assured business leaders that he would convince authorities for providing KESC with the subsidised furnace oil as per the decision of the Economic Coordination Committee (ECC). We hope that the situation would improve in a couple of days or we would be left with no other option but to observe a complete strike for an indefinite period, Zahid said.
Industrialists said KESC is observing 4-hour load shedding after an interval of four hours; resultantly not even a single 8-hour shift can operate properly.
Mian Abrar, President Karachi Chamber of Commerce and Industry (KCCI), said that in terms of efficiency it was a 24-hour load shedding because due to schedule not even a single shift could operate.
Ehteshamuddin, Chairman of Korangi Association of Trade and Industry, said that industrial zones must be exempted from power cuts as these areas main bread earner for the country.
The industry of the cosmopolitan city has been going through severe trauma since long. Earlier, it was law and order situation and now the water and power shortages have put the industries in a crisis like situation.
The business community is of a unanimous opinion that authorities should honour the ECC decision and provide KESC with subsidised furnace oil to generate power as in winter the gas is diverted towards households.
Vice President Federation of Pakistan Chambers of Commerce and Industry (FPCCI), Khalid Tawwab said that industrial production was suffering a loss of over 60percent per day. If the situation persists the entire industry would collapse.
Tawwab alleged that it was the routine practice of KESC to blackmail the industry through load shedding to exert pressure on the government for subsidised fuel. On the other hand, KESC portrays a completely different picture.
Ghuffran Ahmed, a very senior KESC official, said that KESC did not need to blackmail anyone for subsidised fuel.
He said that businesses are only safeguarding their own interests as they use gas for their captive power plants, which is in sheer violation of Gas Policy 2005. The Gas policy defines that the utility would be provided to captive power plants only after meeting the requirement of industry that used gas as raw material, CNG stations and power sector including KESC.
The gas burnt in captive power plants was supposed to be provided to the KESC to generate more electricity for the city, Ghuffran observed.
He raised questions that why the SSGC and SNGPL was supplying gas for captive power plants and curtailing supplies to KESC.
When we took over KESC, we made some commitments with the government and so did the government. We have fulfilled all our commitments including 750MW addition in the system, 10 percent reduction in distribution losses and infrastructure improvement.
But the government did not fulfilled its commitments, as we had been assured 276mmcfd gas for existing plants and 130mmcfd for out new Bin Qasim plant, which has been shutdown due to unavailability of gas as KESC is only getting 115mmcfd.
Ghuffran said that so far subsidized fuel was not supplied to the KESC but as the winter sets in it is expected they will the fuel which will improve the situation.
Industrialists estimate Rs10bn production losses each day
Javed Mirza
Friday, November 25, 2011
KARACHI: Crippling power outages of up to 12 hours in the industrial zones of Karachi, which is causing an estimated production loss of Rs10 billion a day, may not only jeopardised countrys export but governments revenues as well, leading industrialists said on Thursday.
The Karachi Electric Supply Company (KESC), on the other hand, has its own reasons for resorting to power cuts in the industrial zones. It also refutes business communitys claims and alleges that businesses are stealing gas in violation of the Gas Policy 2005.
The seven industrial zones of Karachi are facing 12-hour load shedding a day causing production losses to the tune of Rs10 billion, said Mian Zahid Hussain, a prominent business leader. If the situation continues like this for another month, it is feared that the country will fall short of meeting the export target by around 20percent, he said. Mian Zahid, however, said that Governor of Sindh, Dr. Ishratul Ebad, has finally intervened and assured business leaders that he would convince authorities for providing KESC with the subsidised furnace oil as per the decision of the Economic Coordination Committee (ECC). We hope that the situation would improve in a couple of days or we would be left with no other option but to observe a complete strike for an indefinite period, Zahid said.
Industrialists said KESC is observing 4-hour load shedding after an interval of four hours; resultantly not even a single 8-hour shift can operate properly.
Mian Abrar, President Karachi Chamber of Commerce and Industry (KCCI), said that in terms of efficiency it was a 24-hour load shedding because due to schedule not even a single shift could operate.
Ehteshamuddin, Chairman of Korangi Association of Trade and Industry, said that industrial zones must be exempted from power cuts as these areas main bread earner for the country.
The industry of the cosmopolitan city has been going through severe trauma since long. Earlier, it was law and order situation and now the water and power shortages have put the industries in a crisis like situation.
The business community is of a unanimous opinion that authorities should honour the ECC decision and provide KESC with subsidised furnace oil to generate power as in winter the gas is diverted towards households.
Vice President Federation of Pakistan Chambers of Commerce and Industry (FPCCI), Khalid Tawwab said that industrial production was suffering a loss of over 60percent per day. If the situation persists the entire industry would collapse.
Tawwab alleged that it was the routine practice of KESC to blackmail the industry through load shedding to exert pressure on the government for subsidised fuel. On the other hand, KESC portrays a completely different picture.
Ghuffran Ahmed, a very senior KESC official, said that KESC did not need to blackmail anyone for subsidised fuel.
He said that businesses are only safeguarding their own interests as they use gas for their captive power plants, which is in sheer violation of Gas Policy 2005. The Gas policy defines that the utility would be provided to captive power plants only after meeting the requirement of industry that used gas as raw material, CNG stations and power sector including KESC.
The gas burnt in captive power plants was supposed to be provided to the KESC to generate more electricity for the city, Ghuffran observed.
He raised questions that why the SSGC and SNGPL was supplying gas for captive power plants and curtailing supplies to KESC.
When we took over KESC, we made some commitments with the government and so did the government. We have fulfilled all our commitments including 750MW addition in the system, 10 percent reduction in distribution losses and infrastructure improvement.
But the government did not fulfilled its commitments, as we had been assured 276mmcfd gas for existing plants and 130mmcfd for out new Bin Qasim plant, which has been shutdown due to unavailability of gas as KESC is only getting 115mmcfd.
Ghuffran said that so far subsidized fuel was not supplied to the KESC but as the winter sets in it is expected they will the fuel which will improve the situation.
Industrialists estimate Rs10bn production losses each day
