The All Pakistan Textile Mills Association (APTMA) has strongly reacted to the government's decision for curtailing gas supply to textile industry, which has led to a decline in production and exports. It may be noted that the Sui Northern Gas Pipelines Limited (SNGPL) has communicated to the textile industry for the curtailment of gas supply from July 9 to 20.
The gas supply cut to the extent of 100 MMCFD is based on the decision of the Cabinet Committee on Power Crisis Resolution for the supply of gas to IPPs plants, which could be operated on furnace oil. The APTMA spokesman said the captive power plants installed by the industry were generating about 400 MW electricity out of 100 MMCFD gas without any line losses. As all captive units did not have backup to undertake production, it might render workers of the affected units jobless, he added.
The spokesman further said it was feared that the situation might create law and order situation. He said the textile units having electricity connections as a backup would shift on the electricity network, which was already burdened due to the power shortage to the extent of 4000 MW.
It would further add to the shortage on the system, he said, adding the textile industry on the Pepco network was already enduring five hours announced and as many hours unannounced load shedding. He further noted that the IPPs electricity generating units, running on 100 MMCFD gas taken from the captive power of the textile industry, would generate 25 percent less electricity, and line losses would go up to 40 per cent.
According to APTMA spokesman, the textile industry was making timely payment of bills to the gas supply company, and diversion of supply to the IPPs might raise the issue of circular debt and liquidity crisis for the gas supply company.
The APTMA spokesman has urged the government to withdraw the decision of the Cabinet Committee regarding curtailment of gas supply to the textile industry in the larger interest of the industry and exports. He further said a directive should be issued immediately that the IPPs to be operated on furnace oil to overcome power crisis.
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