ISLAMABAD, July 1: Industries and Production Minister Liaquat Ali Jatoi on Tuesday directed the Pakistan Industrial Development Corporation (PIDC) to set up separate dates processing and apple storage projects in Balochistan with a total cost of Rs20.5 million.

The Post Harvest Apple Treatment Project will be set up in joint venture with a private firm, Sika Private Limited, which is operating a cold storage at Quetta.

The project involves a capital expenditure of about Rs18 million, of which the major cost will be imported machinery of Rs11 million.

Both the PIDC and Sika will contribute 50 per cent of the project cost (Rs9 million each) as equity and the management of the project will be assigned to Sika. The grading plant will be set up at the premises of Sika at Quetta.

The project will offer services for grading apple and other fruits to third parties and Sika will be allowed to utilize 50pc of this capacity on charge basis.

Under the terms and conditions of the joint venture agreement, the PIDC will exit the project in five to eight years. In case of dispute, the parties will be bound to accept the offer of the other party to sell its shares or to offer its share to the other party at the same price.

About 10,000 sq ft of the Sika premises will be rented at Rs5 per feet. The plant will process 5,000 tons of apples per annum.

The Dates Processing Plant will be set up at Turbat as joint venture between Gedrosian Dates and the PIDC. The private company has experience of processing and exporting dates, and has operated plant at Turbat for only one season.

The project involves a capital expenditure of Rs2.6 million, which includes working capital of Rs1.23 million. The project will utilize the existing plant of Gedrosian Dates at around Rs0.3 million for the year for an area of around 9,000 sq ft.