ISLAMABAD, Jan 29: A high level meeting here on Tuesday approved an action plan for marketing of the Karachi Electricity Supply Corporation (KESC) in March and to complete the deal by September 2002.

The meeting also approved the setting up of a high level task force to be headed by the minister for privatization to ensure adherence to the tight schedule to make preparations for the privatization the KESC.

“We have decided that there will be no further delay and the KESC will be privatized by September this year,” Finance Minister Shaukat Aziz told Dawn.

He said it was decided during the meeting that in order to make the KESC financially viable and to attract local and foreign investors, several measures relating to financial restructuring, regulatory framework and smooth transactions will be taken during the next six months.

The marketing efforts will to be aimed at both domestic and international investors.

According to officials concerned the government would introduce a new law that would allow the new buyer of the organization to recover dues from the government departments and hospitals without much hassle. The new buyer would be required to inject $300 to 400 million in the corporation to make it financially viable.

The KESC is almost 99 per cent government-owned whose most of the debt had been converted into equity. A modernization and upgradation plan is also under way with the financial help of the Asian Development Bank.

Officials said that the government was also planning to change the law so that future buyer of the company should share its profit with the consumers.

“We will prescribe a certain limit of profit and if that limit is crossed, the new buyer will have to offer a certain percentage of the profit to the electricity consumers,” an official said.

The issue, he said, would be decided with the active support of the National Electricity Power Regulatory Authority (Nepra).

Financial Adviser for the KESC — M/s Pricewaterhouse Coppers gave a presentation during a meeting which was presided over by Finance Minister Shaukat Aziz and attended by Minister for Privatisation Altaf M. Saleem and other officials concerned.