Pakistan Steel Mills (PSM) has reportedly locked horns with Ministry of Industries and Production (MoI&P) after the latter slapped an immediate ban on sale of scrap and sought the details of contracts, well informed sources in PSM told Business Recorder from Karachi.
The sources said PSM's Executive Committee of Management (ECM) which the federal government believes is also responsible for destruction of the national asset, held an emergency meeting on March 30, 2014 and sent an SoS to Islamabad. Federal Government has almost finalised the name of retired Major General Zaheer for the post of Chief Executive of PSM.
The sources said ECM discussed in detail the situation with a particular reference to availability of funds to run the plant at 'survival mode' to keep the blast furnace alive. ECM was apprised that details of all the sales of scrap as desired by the Ministry from January 01, 2013 to March 27, 2014 were provided to the MOI&P on March 28, 2014 and it was communicated to them that sales of all items including finished products and scraps etc have been stopped, as directed. In addition, Ministry was also intimated on the sale of condemned material sold through Stores Department of PSM from January 01, 2013 to March 27, 2014.
ECM maintains that it was very much in the knowledge of the government that due to non-injection of sufficient funds for procurement of raw material, Pakistan Steel management was generating the revenue through sales proceeds which includes sale through finished products, sale of scrap and waste material as well as material condemned by various Condemnation Committees, by following all the requisite SOPs. There was no other source of generating revenue to keep the plant in operation. "As a result of stoppage of sale of all products PSM had no recourse but to generate funds to keep the blast furnace alive," the sources quoted ECM as saying.
It is further pointed out that coke and other consumable chemicals were being procured through sale proceeds in short quantities, which now would not be available. As a result of stoppage of sale of goods, buyers who have already made payment against purchase of products/materials pending lifting would result in refund of amount paid by them against purchase of the material. Pakistan Steel's cash flow does not have cushion to refund such payments. Thereby, this situation may attract legal action by the buyers for refund of their money.
ECM further argued that the situation would also badly affect the image of the organisation namely that it does not honour its agreed sale deeds and in future buyers, in case position of Pakistan Steel is revived, may take a long time to develop confidence. In addition to keep the blast furnace alive under the situation stated above, utilities bills such as electricity bills, water bills and other essential payments can not be made, as the same are also being made through sales proceeds in instalments. In such a situation, K-Electric will stop supply of electricity while KW&SB will disconnect water supply. As a result, the whole plant and residential areas would be without electricity and water.
While threatening the federal government, ECM stated that Ministry is also well aware that there is a great resentment amongst the employees of PSM for non payment of their salaries for the last four months. The above situation would give an impression that PSM is being closed which may cause a law and order situation.
Pakistan Steel has time and again intimated its affairs to MOIP and on 10th January 2014 vide its letter No SEC/MOIP/206/2014/34 the financial status of PSM was highlighted. It was submitted to MOI&P that Pakistan Steel has till now managed to continue business without sufficient cash injections from GoP; however, in order to further cope up with the situation, in case of non-injection/financial support from the government, it would not be possible to run the plant even on a 'survival mode'.
The names of bidders who have asked the PSM management to handover the material or payback their money are as follows; Captain Commandant Hassan Zafar - M/S M. Tahir Enterprises - M/S Ibrahim Lubricants - M/S Ibrahim Lubricants - M/S Ibrahim Lubricants - M/S K&Y Trading Co - M/S Brothers Metal Works(Pvt) Ltd - M/S Landhi Traders - M/S Landhi Traders - M/S Landhi Traders - M/S Landhi Traders - M/S Landhi Traders - M/S Brothers Metal Works (Pvt) Ltd - M/S Landhi Traders - M/S Y.Z & Sons - M/S K&Y Trading Co - M/S Hong Chen International - M/S K&Y Trading Co - M/S Y.Z & Sons - M/S Multi Steel Traders -M/S Bismillah Metal Impex -M/S Bismillah Metal Impex -M/S Bismillah Metal Impex -M/S Bismillah Metal Impex -M/S Multi Steel Traders -M/S Multi Steel Traders -M/S Manzoor Traders -M/S Manzoor Traders- M/S Manzoor Traders -M/S Manzoor Traders -M/S Manzoor Traders -M/S Manzoor Traders -M/S Manzoor Traders -M/S Multi Steel Traders -M/S Brothers Metal Works (Pvt) Ltd -M/S Multi Steel Traders -M/S K&Y Trading Co -M/S Manzoor Traders -M/S Manzoor Traders -M/S Manzoor Traders -M/S Manzoor Traders -M/s Brothers Metal Works (Pvt) Ltd -M/s K&Y Trading Co -M/S The Suppliers -M/S The Suppliers -M/S The Suppliers -M/S Kamran International -M/S Tahir Enterprise -M/S Kamran International -M/S Malik Abdul Rasheed -M/s Bismillah Metal Impex -M/S Bismillah Metal Impex -M/s Bismillah Metal Impex -M/S Bismillah Metal Impex M/S Malik Abdul Rasheed-M/S M. Akhtar Traders-M/S M. Akhtar Traders-M/S Landhi Traders-M/S AAA Trading Co-M/S AAA Trading Co-M/S Fahad Khan & Co-M/S Gujranwala Cables (Pvt) Ltd-M/S Gujranwala Cables (Pvt) Ltd-M/S Banbhore Ceramic Industries-M/S Al-Kabir Traders-M/S Sikandar Industries-M/S Sikandar Industries.
The following is the list of left-over lots of condemned scarp material:
i) Condemned Electric Motors; a. Electric Motor Slipring Single & 15 KW Cylenderical; b. Electric Motor Slipring 10 KW; c. Electric Motor Slipring 40 KW - (06 Nos / 1510 Kg) 04 Nos/760 Kg- 01 No/150Kg and 01 No/600 Kg
ii) Condemned Iron Chips Scrap- 300000 KMG- condemned interstage tube bundles (oxygen plants)- CU - 85.80% (4135.560 Kg)- NI - 10.92% (526.340 Kg) FE - 3.28% (158.100 Kg)- 9 bundles 4820 KG.
iii) AC / Elect. Parts Scrap- a. Compressor - b. Fan Motors (Small)- c. Condenser d. Misc. items - 04 items (wt. 3748.500 Kg)- 142 Nos/2651 Kg- 70 Nos/65 Kg 31 Nos/140 Kg 892.500 Kg
iv- Condemned A.C. (S/Contained) water cooled- 54000 - 58000 BTU/HR with Plemum Compressor 3.7KW 4.5 TR 380 - 440 V- 01 No / 180 Kg.
v) Condemned Wooden Sleepers- size 2750 mm X 250 mm X 150 mm - 350 NOS / 26420 Kg
vi) Coal Tar Sludge - 1000 MT
vii) Condemned Machinery / Heavy Vehicles of PAT Department - 26 Nos/298500 KG.
viii) burning wood (branches of tress)- adjacent sport complex & telephone exchange - 100 MT (approximately).
Comments
Comments are closed.