The Privatisation Commission is targeting the deadline of January 15, 2006 for PSMC sell-off. The Privatisation Commission prepared PSMC sell-off plan on fast track basis and invited expression of interest (EoIs) from the interested parties.
The investors showed great interest for procurement of this prime industrial unit. This was an encouraging indication for those who are pushing forward the privatisation programme.
But things got sour for them when ministries came up with different opinions on the land issue in the very first meeting held in Karachi to discuss PSMC sell-off roadmap.
The management's point of view that the entire land of the industrial units should be made part of the bid documents confused the Privatisation Commission and MoI&P officials.
They strongly opposed the proposal and suggested that only reasonable area of land be made part of the bid document for mills' future expansion, and the rest should the utilised for other purposes. The committee suggested more land for National Industrial Park (NIP).
Finally, the matter was referred to the Prime Minister who constituted a two-member committee of MoI&P and Privatisation Commission comprising Abdul Hafeez Chaudhary and Zahid Aziz to study the issue and come up with recommendations.
Sources said the committee studied the facts on the ground and submitted the report to the Privatisation Commission.
The committee recommended that 4400 acres land would be sufficient for PSMC's future expansion plan and the rest should remain with the federal government. The committee quoted Al Tawarqui Group, which has been allotted 220 acres of land for setting up a new steel mills in Karachi.
Since PSMC is an important transaction and officials are making desperate efforts to make it a success, they are on foot to complete the process.
The Privatisation Commission has already opened due diligence for the transaction from December 5. This process will complete by December 29. After due diligence, the government will ask the short-listed parties to deposit earnest money to confirm seat in the final bidding.
Nine parties have been short-listed and their experts are now busy in technical evaluation of the mills.