PESHAWAR: A Peshawar High Court bench on Wednesday directed the provincial government to take a decision about a dispute over the construction of a cement factory by a firm and a small dam by the irrigation department in Nizampur, Nowshera district.

Chief Justice Yahya Afridi and Justice Abdul Shakoor disposed of a petition filed by the firm, Mahraj Enterprises (Private) Limited, which had challenged the construction of a dam near the site of the cement factory.

The bench directed the chief secretary to place the matter before the cabinet for decision in accordance with law within a month.

Private firm had challenged dam construction near factory site in Nowshera

Earlier, the high court had issued a stay order against the dam’s construction.

The bench on Wednesday extended the stay order for a month, observing that the government should make a decision on the matter in the meantime.

The bench observed that as the dispute was between the irrigation and mines and mineral development department, therefore, it would be appropriate that the government should make a decision over this dispute.

Waqar Ali Khan, lawyer for the petitioner, said his client was granted a licence by the government last year to build a cement plant and that its representatives were later taken to China for an investment road show.

He said the chief minister had appreciated the award of licences to the petitioner and other firms and claimed that the companies would make billions of rupees worth of investment.

The lawyer said the petitioner had so far made investment to the tune of Rs200 million in the project, while several other developments were in the pipeline as the petitioner had already placed order for the import of the required machinery.

He added that under the agreement signed with the mines and mineral development department, the petitioner had to recruit around 6500 employees.

The lawyer said the dam project was not feasible in the area due to the presence of limestone as it absorbed water.

He added that there was not much water in the streams passing through the area over which a reservoir had to be constructed.

Additional advocate general Waqar Ahmad said the decision to construct a dam in the area was made in 2002 in light of the findings of a survey and feasibility study.

He added that the dam’s design was finalised in 2013-14.

The AAG said if a public interest project was involved, then the government had the powers to take a decision.

He said the government was ready to return the amount invested by the petitioner in the cement project.

The petitioner’s lawyer said the cement factory was a public interest project as it would address unemployment in the area by offering jobs to around 6,500 people.

Published in Dawn, March 15th, 2018