December 08, 2006	Friday	Ziqa'ad 16, 1427

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HYDERABAD, Dec 7: A division bench of the Sindh High Court, Hyderabad circuit, comprising Mr Justice Mohammad Moosa K.Leghari and Mr.Justice Maqbool Baqar, on Thursday issued notice to the Attorney General for December 14, on a constitutional petition challenging privatisation of the Lakhra Power Plant.

The court partly heard arguments of the petitioners' counsel Abdul Mujeeb Pirzada.

He told the bench that necessary permission for privatisation/ leasing of Lakhra Power Plant had not been sought from the Council of Common Interests (CCI), which is mandatory under the Privatisation Ordinance, 2000.He said that CCI had no interest in the privatisation of Lakhra Power Plant adding that for privatisation of Wapda, or any other institution, the relevant clauses and provisions of the Privatisation Commission Ordinance needed to be adhered to. He further argued that “since the plant had been leased out for a period of 20 years, therefore, it becomes all the more necessary to seek a permission from the CCI under privatisation commission ordinance 2000”.

Since these provisions have been violated, he contended, privatisation of the Plant had become unconstitutional, he said. He prayed the court to declare it unconstitutional and illegal on the pattern of the Pakistan Steels Mills (PSM).

He was on his feet when the case was adjourned to December 14. Earlier, the Deputy Director (administration), Privatisation Commission, filed para-wise comments in response to the petition. He stated that Lakhra Power Plant (LPP) was not leased out by Privatisation Commission hence the question of Privatisation Commission Ordinance 2000 does not arise. He informed the bench that in September 1993, on a summary by the Ministry for Water and Power, Council of Common Interests (CCI) approved privatisation of Wapda's thermal power units and distribution of power according to a phased plan. He said that the Task force on Thar Coal in its meeting on June 17, 2001 held under the chairmanship of the Chief Executive, decided that the government of Sindh should take necessary action to privatise the Lakhra Coal field and power plant in consultation with the Wapda.

He submitted that the Wapda wrote to Privatisation Commission on July 20, 2006, showing its intention to lease out the plant after competition, and it had approached Nepra for determination of tariff adding that Nepra had sought a no objection certificate from the Privatisation Commission for the modification of terms of license, already granted to LPGCL for leasing purpose.

He said that on May 12, 2006, the Sindh cabinet on privatisation had decided that “the mater of LPGCL and Lakhra Coal Development Company (LCDC) was to be referred back to the federal government for privatisation through the Privatisation Commission, Islamabad, and the government may be requested to transfer its share held by Sindh government in LCDC out of privatisation proceeds.

He further said that the decision was conveyed to Ministry for Water and Power on June 29 and forwarded the same to the Privatisation Commission on September 21 for further necessary action. He said that Wapda had leased out the LPGCL on September 11, 2006, and the respondent had requested Ministry for Water and Power to clarify and inform if privatisation was feasible under the circumstances and reply to this effect was awaited.

The respondent denied that the Commission committed any violation of Constitution, Privatisation Commission Ordinance 2000 or any other law. He said that privatisation of LPGCL was never undertaken and the same was not being leased out by the respondent. He further said that CCI had already approved privatisation of all thermal power plants of Wapda.