May 31, 2003	Saturday	Rabi-ul-Awwal 28, 1424

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RAWALPINDI, May 30: The Water and Power Development Authority (Wapda) is withholding Rs27 million in arrears payable to the CNG station owners despite Lahore High Court orders, said the Rawalpindi Chamber of Commerce and Industry president, Osman Khalid Waheed.

Speaking at a meeting here on Wednesday, he said the federal government in its first CNG policy granted a 10-year duty exemption (up to 2002) to the industry for plant and machinery, in addition to appropriate industrial tariff for both gas and electricity. However, these incentives were withdrawn well before 2002 and the industry consequently suffered.

The RCCI president noted that against government policy, Wapda unilaterally began applying commercial tariff on the industry in 1999. This decision was termed illegal by the Lahore High Court in 2002, but Wapda has still not returned arrears to the tune of Rs27 million payable to the CNG stations owners despite the court’s decision.

He said there was no similarities between the cost charged by gas companies, SNGPL and SSGC, for installation of Customer Metering Stations.

The SNGPL, which uses older analogue metering stations, charges Rs280,000 in Lahore and Rs600,000 in Rawalpindi and Islamabad for the same equipment. However, the SSGC in Karachi uses state-of-the-art equipment and yet charges only Rs180,000 from its customers.

Mr Waheed said such instances point to the great need for speedy privatization of state-owned entities, especially in the utilities sector.

He said CNG sector should be given the status of industry in the country in view of its growing importance in the energy sector.

The RCCI chief mentioned that a diesel engine causes seventeen times greater pollution than an engine operating on CNG. Non-CNG vehicles in the twin cities alone release daily 2.5 tonnes of lead, he added.

He asked the government to look into the problems of the CNG sector and allow the import of second-hand CNG compressors to reduce the cost of investment.