Industrialists get much needed relief after SSGC-KESC agreement

29 May, 2013

The industrialists had a sigh of relief on Tuesday after Karachi Electric Supply Company (KESC) exempted the industrials areas of the city from loadshedding following an agreement with Sui Southern Gas Company (SSGC) for supply of gas and over the outstanding dues owed by it to the gas utility.
Following the intervention of Sindh Governor Dr Ishrat-ul-Ebad, the dispute between the two utilities was resolved on Tuesday night as SSGC agreed to supply 220 mmcfd gas per day to KESC. In response, the KESC agreed to pay 30 percent over the recurring bill to SSGC to settle its outstanding dues, exempt industrial areas from loadshedding, besides the domestic consumers who pay their bills on time. The utility also agreed to reduce load shedding in residential and commercial areas.
Business leaders and representatives of industrial association sounded convinced that the load shedding is now over and there is no reason to be worry about production. The industrialists said that now they will resume full production from Wednesday. Chairman Korangi Association of Trade and Industry (KATI), Mohammad Zubair Chhaya expressed gratitude to the Governor Sindh, Dr Ishrat-ul-Ebad Khan and Caretaker Minister for IT, Mian Zahid Hussain for intervening in the matter and resolving the issue.
He said that they made tremendous efforts to bring the two utilities at table to resolve the dispute of gas supply and payment of dues as well as exempt industrial areas from loadshedding. He said that industrial areas of the city were facing 10 to 12 hours load shedding which was causing huge production losses.
Meanwhile, Karachi Chamber of Commerce & Industry (KCCI) lauded the efforts of Governor Sindh for taking serious notice of power loadshedding in the industrial zones and increase in the power load-shedding in the commercial and residential areas and to bring the SSGC and KESC officials to table to resolve the conflict between the utility services providers.
In a statement President KCCI Muhammad Haroon Agar said that Dr Ibad acted in the larger interest of the industries and Karachiites. He said that the governor has always taken keen interest in business and people-friendly measures, maintaining peace, infrastructure development, health and education services.
Agar also appreciated the Interim Minister for Petroleum and Natural Resources Sohail Wajahat and Secretary Petroleum Abid Saeed for their support to sign agreement between SSGC and KESC for supply of required quantum of gas to KESC. KCCI's President also underlined the need maintain uninterrupted power supply to all the industrial zones for smooth running of industrial wheels, which will ultimately lead to greater economy activities, enhance exports and generate more employment opportunities. He stated that the incoming government must accord top priority to resolve energy crisis.
Agar also urged the incoming government to resolve the conflict over payments between KESC and SSGC to address it once for all so that the biggest metropolitan city of Pakistan having the largest industrial base of over 16000 industries, 500 markets and commercial centres and 20 million populations must not suffer with the menace of power load-shedding in the future.

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