KARACHI, Aug 27: Pakistan Steel (PS) would be handed over to only a credible strategic bidder who must revamp and expand the mill to its designed capacity of 3 million tons per year.

This was stated by Financial Advisor to Prime Minister Dr Salman Shah during his visit to Pakistan Steel here on Saturday. He said that the PS should have sufficient land for this purpose.

He said that the PS turnaround was unprecedented and historic. Its after-tax profit of Rs6 billion and generation of Rs9 billion revenue from sales and income tax paid in last financial year had significantly contributed to the national economy.

He noted that the PS privatization, as part of government’s overall economic concept defined by liberalization and deregulation, was now round the corner.

Earlier, the chairman PS, Lt-Gen (Rtd) Abdul Qayyum briefed the Advisor on Steel Mills performance and also the progress on privatization.

He informed the advisor that leakages and malfunctioning of coke Over Batteries Plant (COBP) were being endogenously addressed and the situation had been partially restored through reverse engineering and extreme devotion shown by Pakistan Steel engineers.

Single tender received for repair would be opened soon to assess how international help can be taken for restoration of batteries which have affected the PS production in 1st quarter of the current financial year.

With import of coke, Pakistan Steel management is determined to take PS to over 90 per cent capacity in next two months.

The chairman also gave a detailed briefing on the PS land assets and highlighted that according to Detailed Project Report (DPR) finalized by former Soviet experts in early 70s, the PS like all similar plants built in Iran, Turkey and Egypt needed about 8,000 acres for labour colonies and little more than 10,000 acres (3500 to 4000 hectors as mentioned in DPR) for the plant of 1.1 million tons capacity to be doubled at a later stage.

The Sindh Government through a Gazette Notification dated November 1, 1984, permitted use of 1420.07 acre land for establishment of downstream industrial estate for only steel related industries specified in the gazette.

This land has almost been consumed because of the prime location, cheap lease rates and excellent utility services provided by Pakistan Steel.

All industries are to be built in two years otherwise lease could be canceled.

Present lease rate is Rs4.35 million per acre. The sale price along with transfer of marketable title as per land valuators is Rs10 to 11 million per acre which is 5 to 6 times cheaper than industrial plots in SITE and Korangi industrial areas which are being sold for Rs50 to 60 million per acre.

The PS management has recommended leasing out to only steel related industries on prevalent rates with a proviso to submit feasibility before allocation and complete installation within two years as being done hither-to-fore.

Dr Salman Shah also paid visit to coke over batteries, cold rolling mill, hot rolling mill, Cadet College and hospital, apart from visiting entire downstream industrial areas.—APP