The NWFP government is unlikely to go for establishment of proposed 200-acre industrial estate in Malakand Agency, which was announced in the industrial policy 2005, unveiled by Chief Minister Akram Khan Durrani, during the triumphant Investment Conference held last year.
"The feasibility study prepared by a private firm has termed the establishment of the industrial estates unfeasible due to high price of land in the proposed site of Wartir, near Malakand-III Hydro-power project," Mohammad Ishaq, a Senior Research Officer Planning in Sarhad Development Authority (SDA) told Business Recorder on Wednesday.
According to the concerned accountancy firm, they had sought the professional opinion, which considered that per acre price of the plot in the site was much higher.
"It is unprecedented high price of Rs 2 million per acre besides construction of a number of bridges and culverts," he added while quoting the feasibility study, conducted by Anwar Javid & Co, Chartered Accountant. He said that the acquisition of such a large portion of land at high price was difficult for the provincial government.
In the feasibility study, the Sarhad Development Authority official has termed the project unfeasible and not suitable for the planned industrial estate in Malakand Agency.
However, he added that the government would encourage private sector to establish industrial units on their own in the area and would provide them the announced 25 percent rebate on the electricity consumption.
The government official said that provincial government was going to establish a revolving fund for extending the incentive granted in electricity consumption to the new industrial units in the area, proposed for the establishment of industrial estates.
The feasibility report, he said, had been sent to senior government officials, who were considering the feasibility study and formal decision as either to go for the establishment of the proposed industrial estate or abandon it.
Regarding the direct provision of electricity with 25 percent rebate on power consumption, he said that Shydo (Sarhad Hydro-power Development Organisation) had no power distribution line and it has to distribute it through the power lines of Wapda.
Similarly, Nepra has monopoly over the fixation of the prices of electricity in the country. Elimination of monopoly of Nepra was looking impossible, as it did not allow any one to compete with them.
The provincial government under its Industrial Policy 2005 has announced reservation of 25 percent of the electricity to be generated from Malakand III Hydel Project for selected new industries to be set up at the proposed Malakand Industrial Estate.
Modalities for eligibility, according to the policy, would be determined by a high level committee with representation from private sector.
A criteria for obtaining incentives granted by the NWFP government for the promotion of investment in the province in its industrial policy have been termed very strict and will not benefit any of the existing industrial unit of the province.
"Hardly one to three industrial units fulfil the criteria," a senior official of the Department of Industries told this scribe. He said that although 15 to 20 investors had obtained the pro forma, but a few were in position to utilise it.
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