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| November 29, 2006 | Wednesday | Ziqa'ad 7, 1427 |
Lakhra plant not being privatised, court told
HYDERABAD, Nov 28: The Hyderabad circuit bench of the Sindh High Court was informed on Tuesday by the Joint Secretary of Ministry of Water and Power, M. Zahid Shah Mohmand, that the Lakhra Power Plant was not being privatised and “the option of privatisation will be considered on expiry of its 20-year lease”.
He said that plant’s possession is to be handed back to the lessor company which is a subsidiary of Wapda, on expiry of lease period.
The comments were filed in response to a constitutional petition, filed by chairman Zonal Labour Union, Mazhar Ali Mallah and secretary Punhal Jamali, challenging what they said government's decision to privatise the plant.
The court adjourned the hearing to December 7. Copy of para-wise comments was supplied to Mr.Jhematmal Jethanand, the counsel for general manager Lakhra Power Plant, Ashfaq Leghari.
The ministry official said that lease agreement was arrived at after a transparent process and there had been no secret negotiations.
He stated that decision is to rehabilitate the plant through involvement of private sector as Wapda had no sufficient funds for this purpose.
“The option of privatisation will be considered on expiry of 20-year lease”, read the joint secretary's statement.
He said that on a summary moved by Wapda in September 1993, the Council of Common Interests approved privatisation of Wapda's thermal power plants in a phased programme and added that decision also covered Lakhra Thermal Power Plant.
He informed that plant was referred to Sindh Privatisation Commission for privatisation along with Lakhra Coal Development Company which is owned by provincial government.
“However, Sindh Privatisation Commission was not able to do so”, he said.
The ministry official said that a policy decision had been taken to lease the plant because respondent is of the considered view that public interest would be better served if the said plant were to be leased, rehabilitated and operated.
“As regards workers, their interests have been fully safeguarded in the Lease Deed”", he contended.
He said that “Privatisation of Wapda's thermal power plant was approved by Council of Common Interests on a summary as far back as September 1993.
However, for the present it is intended to lease the plant for a period of 20 years and not to sell the same”.
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