Picic launches CNG stations financing scheme

Pakistan Industrial Credit and Investment Corporation Limited (Picic) has announced the launch of CNG stations financing scheme under the title of 'Green Pakistan'. The credit under this scheme will be available from Monday (ie 13th of September 2004) on a debt/equity ratio of 70/30 percent without any fixed limit for the credit, while the interest rate will be based on KIBOR.
The scheme is primarily focused to counter the ever-increasing international prices of petroleum products by providing an economical and viable fuel alternate to the people.
The scheme also emphasises on the promotion of use of environment-friendly fuel to make Pakistan a pollution-free country.
Picic Managing Director Muhammad Ali Khoja announced this, while holding a press conference on Saturday.
He declared the scheme as part of social corporate responsibility of the institution to fulfil the social welfare needs of the country. He said that Picic CNG was a value-added product to provide lease financing for the procurement of machinery for the CNG filling station.
Under this comprehensive package, the corporation would provide financial assistance to the existing petrol pumps and/or new sites to establish a CNG filling station, he explained. He added that besides conventional finance leases, customers could also avail operating lease facility under this scheme.
TECHNICAL HELP: Elaborating the scheme further, he mentioned that besides extending credit facility to the customers, the corporation would also provide technical assistance with respect to the size specification and selection of the CNG and power generation equipment, if the client so desired.
The corporation would also provide procedural guidance to the clients to the extent of educating them about the process for obtaining required licences, permissions and certifications, he said. He mentioned that dedicated CNG stations would be financed on priority basis under the scheme.
Throwing light on new credit products of the corporation, he said that after initiating a number of consumer financing/retail banking products, including house, auto and power generator financing, CNG financing was yet another innovative and unique product of it.
He pointed out that the corporation had disbursed credit worth about Rs 10 billion under retail banking in the last six months and was determined to achieve the target of Rs 20 billion by the end of December this year.
When asked that the corporation had witnessed a major shift in its policy from providing long-term finance to big industries to medium/ short-term financing, he replied that since the long-term resources of the corporation, which mainly included ADB and WB, had dried up in 90s, the corporation had to focus on small and medium entrepreneurs.
Project Director Picic, CNG Scheme, Misbah mentioned that there were 500 CNG stations in the country, which were growing rapidly, while another 300 to 350 applications for CNG stations were pending with OGRA. Keeping in view these statistics, the corporation target for the first year was to convert/establish 300-350 CNG stations under its CNG Scheme, he stated.