Korangi Association of Trade & Industry President Danish Khan and Chairman KCIP Standing Committee KATI Shahid Ghoury have written a joint letter to the Prime Minister’s Advisor on Commerce, Textile, Industry and Production, Abdul Razak Dawood informing about the appalling situation at the Korangi Creek Industrial Park (KCIP). In the letter they have clearly stated that Power Station Private Limited (PSPL) is violating the contract of power supply and causing billions in losses and a significant power crisis.
There are more than 20 industries with over Rs 20 billion investment in operation and 35 industries under construction. The future of these industries is dependent on whether the National Industrial Park Development and Management Company (NIP) can free itself from the unique agreement it had with Power Station Private Limited (PSPL).
The Association, in its SOS has shared the following details regarding PSPL’s conduct: (i) frequent power breakdowns and fluctuations every day. The concession agreement between NIP and the power vender i.e. PSPL envisaged power vendor-owned turbines but he has deployed low quality rental generators and a system not capable of handling large number of industries which is clearly a breach of contract; (ii) power supplier is charging unit rates ranging between Rs 18.31 to Rs 19.63 while K-Electric rates are Rs 11.58 for normal hours and Rs 17.83 for five peak hours.
This rate is almost 40 per cent higher on average despite the following facts: (a) low cost gas is supplied for power generation and (b) NIP’s commitment to supply power to zone industries at competitive rates.
The Association further informed the PM’s Advisor that PSPL has obtained restraining order from courts due to which the industrial units cannot get KE connections. Further, PSPL is denying power to newly completed industries.
