ISLAMABAD, Jan 6: Prime Minister Shaukat Aziz has allowed uninterrupted gas supply to 118 textile factories, which were closed down recently after suspension of supply by the SNGPL owing to shortage of gas in the winter season.
The prime minister took this decision in the light of the recommendations made by a three-member committee headed by the Deputy Chairman Planning Commission Dr Muhammad Akram Shaikh. Other members of the committee were Central Board of Revenue chairman M. Abdullah Yousuf and Secretary Ministry of Petroleum and Natural Resources Ahmed Waqar.
The decision was announced after the meeting of the committee with the prime minister here on Friday. Federal Minister for Textile Industry Mushtaq Ali Cheema also attended the meeting.
An official said that the government initially worked out a list of factories for suspension of gas supply during the winter season in case of shortage. It was decided that supply would be suspended to cement factories followed by captive power plants (CPPs), general industry, Wapda and fertilizer factories.
This decision of the government resulted into suspension of gas supply to 118 textile factories which ultimately resulted into closing down of their operations.
According to the recommendations, the prime minister directed for continuous gas supply to Captive Power Plants (CPPs) in textile sector so that the export-oriented textile industries may be able to maintain its competitiveness in the global export market.
The committee recommended that during peak winter load and/or short supply from gas fields, curtailment of gas supply to those units of CPPs in export- oriented textile sector as recommended by ministry of textile industry would be carried out in the same manner as was done for general industry and CNG under Natural Gas Allocation and Management Policy, 2005.
The ministry of textile industry proposed that the CPPs and general industry must be clubbed together so that the holidays would also provide some cushion of continuation of gas supply to textile units.
It was further decided that the ministry of petroleum and natural resources would direct the fertilizer plants getting gas supply from SNGPL’s network to perform annual maintenance shutdown during winter season — December to February.
The fertilizer factories mainly use gas as a raw material. The annual maintenance took around six weeks, which would now be carried out in the winter season thus provided maximum gas to other factories particularly the textile units.
It is hoped that the implementation of these recommendations would provide tangible relief to CPPs in the textile sector, which enable this vital sector to remain competitive in the global environment and maximize exports.
The textile industry ministry said that the decision would help in increasing the production capacity of the CPPs to meet the buyers demand.
It may be mentioned that the issue of disconnection of gas supply to CPPs was considered in the last ECC meeting held on January 4 wherein a committee was constituted by the prime minister to look into the matter and to present its report within 24 hours.