Development projects: Mintex demands Rs 200 million in 2011-12 budget

27 Apr, 2011

The Textile Ministry (Mintex) has demanded Rs 200 million for development expenditure in the budget for 2011-12, it is learnt. According to documents available with Business Recorder, Mintex has targeted two areas--infrastructure development, and human resource development--in the coming budget.
Mintex has demanded Rs 17.5 million for Lahore Garment City Company (LGCC). LGCC is developing Garment City, and the buildings constructed would be leased to the private sector. The LGCC was approved by Planning Commission as loan project and total funds amounting to Rs 497.6 million were allocated for this project. Up till now, funds amounting to Rs 480 million have been released to the Company. In the coming budget, an amount of Rs 28.682 million has been requested for Faisalabad Garment City (FGCC). It is also a developing factory space for value-added garments. Total funds allocated for this project are Rs 498.8 million and up till now Rs 470.138 million has been released to the Company. One building of the City has been leased out to a private entrepreneur and operations of the stitching company have started.
An allocation of Rs 47.834 has been requested for 2011-12 for providing and laying of 48-inch diameter MS pipeline for Pakistan Textile City Karachi. PC-I for laying a 23 km 48" diameter water pipeline worth Rs 636.5 million was approved by Ecnec in November 2006. It was decided that the Federal and Provincial governments would share the cost of the pipeline project @ 50:50 each. Up till June, 2010, funds amounting to Rs 82 million were released for the project.
Mintex has demanded Rs 25 million for Export Development Plan Implementation Unit (EDPIU). This project was allocated funds of Rs 25 million through technical supplementary grant by the P&D Division for the 2010-11. This allocation has now been curtailed to Rs 19 million. The Ministry has further demanded Rs 50 million for Pak-Korea Garment Technology Institute Karachi in the budget fo 2011-12.
KOICA Republic of Korea is providing $1.5 million for the establishment of Pak-Korea Garment Technology Institute, Karachi. The process for the hiring of the Principal and faculty of the institute is underway and will be completed shortly. As per agreement with KOICA, the institute will be made operational from September, 2011. In this regard, PC-1 submitted by Mintex was considered by Central Development Working Party (CDWP) in November, 2010. CDWP approved the project at a cost of Rs 300 million (share of KOICA and PSDP is Rs 128 million and Rs 172 million, respectively). Out of the total allocation of Rs 172 million of PSDP, Rs 50 million has been requested for 2011-12.
Out of the budget the Ministry has requested Rs 29.984 million for Master Trainers Project for Skill Development Program of Textile Industry. The subject project was approved by the CDWP in its meeting held on 12-05-2010 at a total cost of Rs 59.490 million.
Under this project, 2000 master trainers will be trained in the Garment Sector. These trainers will then work as instructors to train the Stitching Machine Operators, pattern cutters and workers in the field of packaging and line supervisors etc. In the upcoming budget, Rs 1.0 million has been requested for Karachi Garment City Company, Karachi. Karachi Garment City is being established at 300 acres in Karachi and EDF has provided funds for the land. Government of Sindh allocated 300 acres of land in vicinity of Port Qasim Authority @ Rs 1 million per acre and KGCC has taken possession of the land.

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