Infrastructure Development Companies (IDCs) have been formed in four industrial areas in Korangi, Landhi, Federal 'B'Area, and North Karachi Industrial Estates under section 42 of Companies Ordinance 1984 to undertake orderly, planned and rapid industrialisation in the province.
They have also obtained licences from Securities & Exchange Commission of Pakistan (SECP), duly incorporated by Registrar of Joint Stock Companies.
The move is aimed at establishing, developing and upgrading the industrial estates in an orderly manner, and stall the haphazard growth of industries in these estates.
To streamline the system and to make the companies work effectively, the Sindh Labour, Transport, Industries and Commerce departments on August 3 notified nomination of officials on the Board of Directors of these companies. They include Secretaries of Finance, Labour, Transport, Industries and Commerce, and Local Government and Katchi Abadies, and the Managing Director of Karachi Water & Sewerage Board (KW&SB).
The IDCs have been formed under the directives of President Pervez Musharrf, Sindh Governor Dr Ishrat-ul-Ibad, and Federal Ministry of Industries, Production & Special Initiatives.
The decision to form these companies was taken at a meeting held here under the chairmanship of President Musharraf in July last year. The President had directed formation of these companies in each industrial estate and the Board of Management to run their affairs.
The purpose of IDCs is to rehabilitate and upgrade the existing infrastructure and identify the projects for future needs. However, it was pointed out that since Site Limited is already a public limited company, there is no requirement to replicate another company in that area.
Since none of the industrial estates in Karachi/Sindh is equipped with a Combined Effluent Treatment Plant (CETP), which is essential under the WTO regime and for compliance with NEQ standards, the President had directed that CEPT should be constructed and made operational at the earliest. He had also directed the Ministry of Industries to provide CEPT in the industrial estates of Karachi and further to form independent companies to manage the CEPT after its construction.
Another meeting was held under the chairmanship of Minister of Industries, Production and Special Initiatives here in August last year in which, following decisions were taken:
I. The funds will be released by National Industrial Parks Development and Management Company (NIP) for rehabilitation of infrastructure of the industrial estates in Karachi. Thereafter, contractual agreements would be signed between NIP and each company for release of funds to them.
II. Each industrial estate would set up an independent company. Provincial government and industrial association will expedite formation of the companies.
III. Standards/performance criteria will be developed by NIP and funds will be given as per priority of work. NIP will carry out an exercise for indicating priority/need of the area. Quality control, monitoring of work and technical assistance will be the responsibility of NIP, while actual implementation will be done by these companies themselves.
IV. The Board of Directors of the companies will be vetted by NIP.
V. SITE, Korangi and Landhi estates would set up independent companies for operation and management of CETPs. They would prepare and furnish agreement on tariff (between the end-users and the companies), sign performance bond, and satisfy Pakistan Industrial Development Corporation (PIDC) about their technical, managerial and financial ability to operate CETPs on sustainable basis.
Thereafter, a contractual agreement would be arrived at between PIDC and three estates and funds would be released for execution of work. To co-ordinate and monitor the activities and operation of the companies, the provincial government had decided to constitute a Board namely 'Sindh Infrastructure Development Board' (SIDB) under the chairmanship of Minister for Industries with the following composition:
Minister of Industries, Chairman, City/District Nazim concerned, Secretary Industries, Secretary Finance, Secretary Local Government, All CEOs of the IDCs, any co-opted member as desired by the chairman.
It was decided that after conceptional approval, a notification, with the approval of the competent authority, will be issued to constitute 'Sindh Infrastructure Development Board" (SIDB).
The intention was that the Board would co-ordinate all development activities of the companies in the respective industrial estate and will evaluate and approve all proposals submitted by the companies with regard to infrastructure development. It was further proposed that there was no need for another company to supervise, manage and monitor the CETPs and the IDCs may be assigned this job.
A senior official in one of the IDCs, when asked whether SIDB has been constituted and any notification issued in this regard, drew blank, and said that he was not aware of such a development so far.