The government is likely to provide additional 76 MMCFD gas to textile industry from July 10, which would reduce the gas loadshedding to two days a week, it was learnt reliably. The Gas Supply Agreement (GSA) with four Independent Power Producers (IPPs) expired recently after which the Petroleum Ministry proposed to the Economic Co-ordination Committee (ECC) to approve the extension of GSA to two of the IPPs while the remaining two must operate on diesel/furnace oil, sources told Business Recorder on Monday.
The ECC in its last meeting decided to continue gas supply to two IPPs and allowed two others to use diesel as an alternate fuel, for which price differential would be picked up through an increase in electricity tariff.
The textile industry is currently facing a shortage of 140 MMCFD gas. The two IPPs which would not receive an extension in GSA, were getting 76 MMCFD gas and now the same would be diverted to textile industry to mitigate its sufferings, sources said. The textile industry was at present receiving gas four days a week, however, due to low gas pressure, the industry had almost come to a halt and it was suffering a loss of $1.52 billion per month, Chairman All Pakistan Textile Mills Association (APTMA) Gaohar Ijaz told Business Recorder.
He said that last week a meeting was held between Federal Minister for Petroleum and Natural Resources Dr Asim Hussain and APTMA, during which the minister assured that the industry would receive gas five days a week from 10th of the current month. However, APTMA insisted on seven days a week gas supply. The APTMA Chairman feared that if uninterrupted energy supply was not ensured to the textile industry, it would not be able to procure the forthcoming bumper cotton crop, expected to the tune of 16 million bales.
Comments
Comments are closed.