July 14, 2006	Friday	Jumadi-ul-Sani 17, 1427

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ISLAMABAD, July 13: The Ministry of Industries and Production has agreed in principle to consider a set of proposals prepared by the Pakistan Steel Mills (PSM) to revamp the mills with a view to saving it from any major breakdown.

Informed sources told Dawn on Wednesday that the ministry was likely to start ‘processing’ the proposals on Friday.

Eager to utilise the breathing space provided by the Supreme Court verdict which revoked the privatisation deal of the national asset, the PSM management wants the revamping done urgently and even possible expansion at a later stage.

The PSM proposals contain various options, including revamping, expansion of production from 1.1 million tons to 1.5 million tons and the funding required to carry out necessary repairs.

The PSM has also invited the attention of the ministry about what it terms “serious implications” in case the mills’ revamping is delayed on some pretext.

The management of the mills believes that through revamping and expansion there will be value addition which will eventually help the government to get a better offer when it is again put up for privatisation after deliberations by the Council of Common Interest (CCI).

The sources said that officials of the ministry of industries and production were cognizant of the fact that the mills was fast deteriorating and needed immediate repairs.

“What is the nature of the state of affairs in the mills and up to what extent revamping is required will be seen by the ministry,” a source said.

They agreed that the coke oven battery of the mills, which is in a terrible shape, needed immediate attention of higher authorities.

A senior official of the mills told this correspondent that if the ministry allowed revamping, a formal procedure would be adopted to undertake the job. “We would be calling tenders from both local and international companies for the revamping of the mills,” he said.

The official said that he had been meeting senior officials in Islamabad in connection with the revamping plan. “I am hopeful they will allow us to go for the revamping so that the mills does not suffer any more and once again starts running on over 90 per cent capacity,” he said.