LAHORE, Oct 16: The Railways has agreed to clear the arrears of the Sui Northern Gas Pipelines Ltd (SNGPL) on account of late payment surcharge.

The railways owed a sum of Rs228.582 million in late payment surcharge to the SNGPL and the latter had, during the last three years or so, threatened many a time to disconnect gas supply to the residential colonies of the former that house families of around 70,000 PR employees in Punjab and the NWFP.

An agreement to clear the arrears in six monthly installments was reached between the railway and SNGPL, a senior PR officer said on Monday. —Staff Reporter