KARACHI, May 22: Site Association of Industry has sought government's immediate help to pull out the Sindh's oldest industrial area from lingering crisis like water, gas, power and lack of infrastructure.
The association said that many industrial units were shifting to upcountry as industrialists in Karachi were losing inter-provincial competitiveness due to lack of availability of all facilities.
Industrialists said there was no need to set up textile city or industrial areas when the existing units in the city's oldest areas were suffering hardships due to lack of basic facilities. The government first ensure basic facilities to the old industries and then ponder over setting up other units.
The chairman, Site Association, Mohammad Nisar Sheikhani along with former chairmen and leading industrialists told reporters at a press conference on Saturday that the Sui Southern Gas Company (SSGC) has increased tariff from July 1, adding to the problems of industrialists.
He said industrialists would now have to pay Rs174.66 per mmbtu for gas from July 1, 2004 to June 30, 2005 as compared to Rs166.86 per mmbtu.
At a time when WTO implementation is just seven months away, such kind of gas rate hike would raise cost of production, thus hitting the competitiveness of the local goods in the world markets, he said adding that the fertilizer industry (making windfall profits) and the domestic consumers are left scot free.
OGRA, he said, must accept the ground realities and not allow the increase. Under such adverse circumstances how could the slogan "export-oriented growth" be realized.
On water problem, Site chief said that the industrial area was getting only eight million gallons per day as against the total requirement of 28-30 mgd. The rest of the shortfall is met through the tankers.
About one and a half year back, through the joint initiative of Site Association and the Sindh Government, an agreement was reached with an Austrian Company, VA TECH WABAG, to treat the domestic effluent flowing into TP-1 (a Treatment Plant of KW&SB located in Site). The 30 mgd of effluent was to be treated and 18 mgd of water having 400 TDS was to be sold by the company for industrial consumption. The industrialists have submitted guarantees, and all formalities and signing by the stakeholders has been completed nine months backs but implementation could not be carried out awaiting the signature of the City Nazim. Meanwhile 30 mgd of semi-treated water is being thrown into the river while the thirsty SITE continues to suffer.
Similarly, he said, Asian Development Bank (ADB) had offered credit of soft terms for establishment of "Industrial Effluent Treatment Plant". The feasibility report prepared by a local company on behalf of the ADB has yet to see the light of day as it lies in cold storage with the Federal Ministry, Sheikhani said.
On KESC, he said that the shortfall of 700 mw (during summer), despite procurement from IPPs and Wapda, has resulted in regular power breakdowns in the Site area.
Highlighting other issues, he said the 56 years old physical infrastructure is in tatters and, if immediate remedial steps are not taken, this area will become a dirty dump yard with choked nallahs and drains, with un-pliable roads and a galore of encroachments rendering the area devoid of any semblance of an industrial area of modern age. The indifference and neglect of Site industrial area was appalling in view of its contributions in taxes and duties, in exports and, most of all, in social sector through employment. Foreign buyers refrain from visiting the area, Site chief added.
He said the City government had ignored the Site area in the approved uplift plan of Rs29 billion known at Tameer-e-Karachi under which industrial infrastructure had to be repaired and improved from Rs2.5 billion to be released by the EPB from the Export Development Fund.
Despite being a major contributor in the EDF, the City government, for reasons unknown, had identified only four industrial areas, excluding the main Site area which was totally unfair and unjustified.
Senior Vice Chairman Site Association, Dr Mirza Ikhtiar Baig said that industrial units like garments, processing units, etc., are shifting to Punjab where they have easy access to water, power, gas and infrastructure facilities in comparison with Karachi.
He said higher number of local taxes in Sindh as compared to Punjab is also encouraging industrialists to move their industries to the upcountry.