KARACHI, Jan 9: The revitalization of Karachi Milk Plant is likely to be completed soon with an investment of Rs50 million and the plant would become operational by June following an agreement signed between the Sindh government and Idara-i-Kissan Lahore (IKL).

Under the agreement, which is being vetted by the provincial law department, the plant would be handed over to the IKL by the end of current month for the balancing, modernization and renovation of the installed machinery, it is reliably learnt.

Informed sources said that under the agreement, the Sindh government would make an investment of Rs40 million, while the IKL would make an investment of Rs10 million for revitalization in addition to installation of a new milk powder plant.

According to the terms and conditions of the agreement, the IKL, which has vast experience of revitalization and successfully running milk plants in Islamabad, Lahore and Patoki, had agreed to the 50:50 profit-sharing formula.

With the coming into operation of the Karachi Milk Plant, not only a huge amount being spent on the import of milk powder could be saved, but the locally-manufactured milk powder would also be available at cheap rates.

Initially, the Karachi Milk Plant had been allotted 37 acres, out of which about 29 acres had been encroached while the remaining eight acres were occupied by different agencies including Rangers, traffic /FIA courts, Election Commission office, livestock and fisheries department.

The plant was set up in 1965 at a cost of Rs6.785 million with the assistance of Unicef and FAO with the objective to provide dairy products at competitive rates.

The plant received foreign assistance worth Rs18.252 million from 1965 to 1979 from Unicef and the government of New Zealand and remained functional until 1980. The total area allotted for the plant was 37 acres. However, most of the land has been encroached upon by Kachchi Abadi dwellers.

The IKL made a presentation last year to the Sindh government in this regard.

In the first phase of the agreement, the entire premises is being leased out for a period of three years with a view to assessing the success of IKL in delivering the goods which could be considered for extension in case the project turnout to be successful.

After the IKL had shown interest in the revitalization of Karachi Milk Plant, an eight-member committee was constituted headed by Chief Secretary Javed Ashraf Hussain to thrash out details, profit-sharing formula and other related matters including shifting of the rangers and other offices.

The committee, which held over a dozen meetings succeeded in sorting out all matters including shifting of the Rangers who had been provided alternate accommodation while other offices had also been issued notice to vacate the premises within a week.

The terms of reference of the committee, headed by the chief secretary, included preparing feasibility report on revitalization and handing over of the plant to Idara-i-Kissan, Lahore, on suitable terms and conditions; to recommend investment ratio for the government of Sindh and Idara-i-Kissan and profit-sharing formula and to ascertain timeframe for its revitalization.

Other members of the committee are: Secretaries home, finance, agriculture, member Board of Revenue (LU), commissioner Karachi, Director-general Livestock and representative of Idara-i-Kissan, Lahore.