KARACHI, March 7: The Sindh government has abandoned plans to privatise its 11 grain silos built on the Super Highway at a cost of Rs228 million as it did not receive the reserve price.
The decision was taken at a meeting chaired by the Sindh chief secretary.
Sindh Privatisation Commission Secretary Syed Zulfiqar Ali Shah informed the meeting that the commission held a reserve price auction for the silos built on 11 acres, but it received one bid of Rs10 million only which was far below the reserve price of Rs186 million.
The construction of grain silos was initiated by the National Logistic Cell (NLC), but it abandoned the project after 11 silos, out of 16, were built and when wheat handling machinery had also arrived.
The meeting was informed that the Sindh Cabinet’s Committee on Privatisation had approved the sale of silos in 2006 at a reserve price of Rs228 million, but all attempts failed.
The director of food department which is the original custodian of 70 acres of land reserved for grain silos and allied structures, including residences for staff, informed the meeting that most of the machinery had reduced to junk and their operation would not be cost-effective.
However, the land could be utilised for a suitable project.
The chief secretary directed the secretary of works and communication to visit the site along with representatives of food department, the board of revenue and the privatisation commission and submit a report.
The food department would also incorporate in its report feasibility for utilisation of silos as well as land keeping in view the present infrastructure for storage and handling of wheat in the province.
He also enquired about the status of the remaining 59 acres of land and whether the machinery could be utilised.
He was informed that although land was handed to the food department, the remaining 59 acres is now with the Malir Development Authority.
The chief secretary also directed the Board of Revenue to ascertain the record and present position of land and assess its value in terms of commercial and residential viability.
Earlier, an offer was made to the Port Qasim Authority, which is constructing a grain terminal at the port, to explore the possibility of using the machinery for handling of wheat and other grains at the terminal, but the latter refused to purchase the equipment, saying the grain terminal would be using conventional methods of storing wheat.
The food department was handed 70 acres of land in 1982-83 near Super Highway. The NLC was invited to initiate work on construction of 16 silos for storage of wheat, but it abandoned the project after constructing 11 silos while the remaining five were left up to foundation level.
The project was discarded at a time when packed machinery arrived from abroad which is still lying in containers on the site.
Sources in the Privatisation Commission told Dawn that the food department had been given an option to come out with a suitable food project, which might consume grain silos for the storage purpose.
In case the food department fails to come up with a project, the land would be handed back to the board of revenue and the machinery would be auctioned.