Ogra termed as 'white elephant'

The leader of the business community and Advisor to Chief Minister Sindh on Investment, Zubair Motiwala has termed Oil and Gas Regulatory Authority (Ogra) as 'white elephant' and added that the organisation has failed to safeguard the interest of general public and industrialists. He said this while speaking at a press conference and Eid Milan party of SAI held here, on Tuesday.
On the occasion the Site Association of Industry (SAI) has demanded of the government to abolish Ogra for the sake of public interest. He urged the government to withdraw Ogra's decision of 18 percent increase in gas tariff with effect from January 1, 2010 and withdraw subsidy to fertiliser sector.
Referring to poor performance of Karachi Electric Supply Company (KESC), he said that KESC has received around Rs 7 billion bills during July 2009. However, KESC has not been able to pay dues of Wapda, banks, IPPs and SSGC, which are increasing day-by-day. He said that dues of Wapda have increased to Rs 40 billion in the last few months, while SSGC's dues on KESC have increased to Rs 15 billion.
"I am afraid that non-payments of dues by KESC may result in circular debt problem", he added. At present, he said, the total power requirement of the city is around 1700 to 1800 MW, whereas KESC is deliberately generating less electricity. "If loadshedding continues in winter what would be going to happen in summer that is quite imaginable", he added.
Zubair Motiwala emphasised the need to resolve power supply issue on war footing basis to keep industrial units operating, otherwise over 80 percent of small and medium industrial units may go out of production, besides rendering large industrial units in deep trouble. Regarding Afghan Transit Trade (ATT), he said that out of total goods imported under ATT most of them did not reach to destination.
To overcome this problem it was suggested that Letter of Credit (LoC) for ATT should be opened in Afghanistan only. He said that it was also proposed that duty on imported goods under ATT should be collected at the ports and it should be refunded when goods enter in Afghan territory.
Chairman SAI, Saleem Parekh said that Site industrial area is facing acute water shortage, which is seriously hampering industrial production. He said that SITE Limited is being supplied only 3.5 MGD water against the promised quota of 8 MGD.
Replying a question of non-payment of water bills by the industries, he said that he had requested the authorities to provide details with names of the industries, so that industrialists should be persuaded to clear their dues. However, no reply has been received yet.
Replying another question about roads construction, he said that construction of roads is a responsibility of SITE Limited and added that SITE limited has no funds to go for construction of roads. Former Chairman, SAI, Abdullah Rafi held SITE Limited responsible of water shortage in Site industrial area and said that if we are held responsible for providing water, constructing roads, making arrangement of security and safety then who will run industrial units.
Leader of Businessmen Group (BMG) and former President KCCI, Siraj Kassam Teli emphasised the need of unity among business community. He said that increasing incidents of lawlessness and terrorists activities demand that business community should give up their differences and forge the unity among their ranks to save the country and the future of coming generations.
"Bomb blasts in three provincial capitals in one day is a matter of concern for all," he added. He demanded that interior minister and law enforcing agencies should discuss terrorist issue with business community and take them in confidence about measures adopted to tackle terrorist's activities.
He said that political instability has a serious negative impact on business activities whereas the economic condition is already on the decline. On one hand cost of manufacturing is going up on the other hand purchasing power of general public is sliding down, he added. In addition, he said that it is impossible for a family of four to meet both the ends in just Rs 6,000 per month. It is not possible for industrialists either to increase minimum wage to Rs 10,000 per month, he added.