Gas loadshedding: Aptma fears large-scale closures, lay-offs

The All Pakistan Textile Mills Association (Aptma) has said that it fears large-scale closures/bankruptcies and massive layoffs in the textile industry due to gas load shedding, the fuel used in captive power plants (CPPs), it is learnt. Sources in the textile sector told Business Recorder that though the cost of power generation from CPPs in textile sector varies from unit to unit and area to area, the average power generation cost of CPPs is less than other sources of generation.
Power generated from CPPs, running on gas costs Rs 5.50 per unit, against Rs 12 through use of furnace oil, and Rs 18 from diesel, they said. However, due to the on-going gas load management programme (two days' load shedding a week) it would be difficult to provide the required quantity of gas to CPPs, sources added.
To lessen the gravity of power shortage, the government had decided to procure additional electricity from CPPs installed by the textile sector to minimise the energy shortfall in the country. The CPPs are already providing 200 MW to the distribution companies (discos) and have the capacity to generate additional 250 to 300 MW. The industry could also realise $12 billion export target if the government ensures regular gas supply.
Aptma Chairman Gohar Ijaz told Business Recorder that growing energy shortage, especially in the manufacturing sector, was impeding industrial growth, and could lead to substantial reduction in production, jobs and exports over the next several months. The CPPs were installed by the industrial community to overcome power shortage, but due to gas load shedding CPPs are unable to provide the desired result, and the textile mills are on the verge of collapse. Gohar said that the Prime Minister has directed the SNGPL to ensure 5 days' gas supply to the industry. However, gas for only three and a half days was provided last week.
Another industrialist told this correspondent that when the energy crisis had started, the government had asked mill onwers to install CPPs, using furnace oil, to meet their requirements. But with the passage of time the cost of furnace oil increased and the government asked the industrialists to shift CPPs to gas. Industrialists made huge investment and transferred their power generation units to gas. Now gas is not available and the industrialists are in a fix to meet their requirements.