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APTMA criticises renewal of gas supply contracts to IPPs
01
Jul '11
All Pakistan Textile Mills Association (APTMA) Chairman, Gohar Ejaz has strongly criticised the Government's move to renew gas supply contracts of Independent Power Plants (IPPs) under Gas Supply Agreements (GSAs).

The contracts for supply of gas were renewed after the earlier contracts ended on June 30, 2011.

Mr. Ejaz said that gas was supplied to the IPPs on a priority basis, which caused the textile industry to bear gas suspension for 39 days during summer and 71 days during winter, badly hitting production.

He said that the Government should make sure that the textile industry gets regular gas supply all through the week from July 1 onwards.

He added that if constant gas supply is not restored to the textile industry from July 1, it would almost become impossible for the industry to make good of the current season's bumper cotton output, which is likely to be around 16 million bales.

The APTMA Chief said that under the free market mechanism, the exports of the textile industry crossed the US$ 14 billion mark last year. The industry has a potential to attain US$ 20 billion in exports during next fiscal and hence, it is imperative for the legislators to ensure continuous gas supply to the textile industry, he added.

Fibre2fashion News Desk - India


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