The Privatisation Commission (PC) and Ministry of Industries (MoI) have opposed Pakistan Steel Mills (PSM) proposal for making the entire 19,000 acres of land of the mills a part of the bid document to facilitate the buyer for its future expansion and dumping of waste material.
Both, PC and MoI, recommended to the government that 6000 acres of land would be enough for the mills future expansion plan and other purposes such as dumping of waste and storage facilities. They are of the view that land available with PSM is very costly and its 6000 acres should be offered to the buyer and the rest either be utilised for some industrial zone like facility or separately sold to the private sector at the national industrial park rates.
An official of the MoI told Business Recorder on Monday that PC and MoI opposition resulted in formation of an inter-ministerial committee that would take into account all aspects of the issue and submit its report to the government.
The committee, comprising representatives of MoI, PC and Ministry of Finance (MoF), is scheduled to visit PSM on October 23, to study all factors including the land ahead of official presentation to the parties which have submitted SoQ to take part in bidding process of the industrial unit.
Sources said that PC and MoI quoted Al Tawarqi Group''s project that would be established on 220 acres in support of their argument and told the participants of the meeting that if Al Tawarqi Group can go for an industrial unit at only 220 acres then why PSM management was interested in making 19,000 acres land a part of the bid document for its possible future expansion.
Sources said that PSM management had taken the plea during the previous meeting held in Islamabad last week in connection with privatisation of the mills that offer of the entire land of the unit can make it an attraction to the investors.
The Privatisation Commission is actively completing the formalities for PSM sell-off and it has already hired the services of a foreign consultant for the job.
The commission offered PSM to the private sector a few weeks back and invited letters of intent from the interested parties. It received encouraging response from the local as well as foreign investors. As many as 12 parties have submitted statement of qualification (SoQ).