The decision was made in the cabinet meeting at the News Sindh Secretariat where Sindh Chief Minister Syed Murad Ali Shah presided over, here on Monday. The meeting was attended by provincial ministers, advisers, special assistants, chief secretary and concerned secretaries.
The agriculture department told the meeting that PASMA has requested for grant of subsidy for sugar export. The Sindh Minister for Agriculture Sohail Siyal told the cabinet that the millers have 500,000 tons of surplus sugar in their stock. PASMA says that the production cost of sugar has been soared to Rs 64.19 per kg. Therefore, purchase of sugarcane at higher prices was not feasible for them until and unless they are allowed export of surplus sugar and given subsidy on export at Rs 20 per kg because the sugar price in the international market is very low.
It may be noted that the Economic Coordination Committee (ECC) of the cabinet has allowed export of 1.5 tons of sugar and a cash freight support of Rs 10.7/kg and despite this, the millers are not ready to start the crushing. Therefore, in order to resolve the matter, the cabinet may approve the remaining amount of subsidy of Rs 9.3 per kg on export of sugar, the agriculture department recommended.
The ministers and secretaries thrashed out the matter and finally the cabinet approved the subsidy on export of sugar. The chief minister said that there must be a condition for the sugar mills' owners to clear the liabilities of the growers to qualify for getting the subsidy.
The other item, the cabinet discussed in detail, was fixing of wheat procurement target. The meeting was told that there was a bumper crop of wheat this year.
Minister for Food & Parliamentary Affairs Nisar Khuhro said that the provincial government was trying to export 300,000 tons of wheat but the federal government was reluctant to announce the rebate.
Sindh Energy Department presented it case for acquisition of additional working interests in the Hub block. The cabinet was told that Sindh Energy Holding Company (SEHCL) established in pursuance of Petroleum Policy 2012 to acquire 2.5 percent working interest in the oil & gas exploration and production blocks partly or wholly located in the province of Sindh.
The cabinet was informed that SEHCL has initially acquired working interest on full participation basis with PPL and OGDCL in seven oil and gas exploration and production blocks located in Sindh.
The blocks with working interest share of OGDC are: Ranipur 2.5 percent share, Armala 2.5 percent, Zorgarh 1.7% and of PPL Shah Bandar 2.5%, Khipro East 2.5% share, Malir 2.5% and Hub 0.15% share. The cabinet said that the Sindh government must invest in such projects in the larger interest of the people of the province. Therefore, it approved to acquisition of 2.5 percent working interests in Hub block of PPL.
The provincial cabinet also approved draft rules for water hydrants in Karachi. The Minister for Local Government Jam Khan Shoro said that there were 200 hydrants in city and their net profit had never gone up to Rs 15 million but the profit of six hydrants being operated by water board was Rs 80 million. "This is the result of sagacious policy of water board which is working in its interest and in the interest of the people," he said. Under the approved rules there would be a committee for selection of hydrant's location and such other matters.
A procedure has been worked out to operate and manage hydrants to be established on the land of water board. It was urged that there should be a proper agreement with the contractor for arranging electric power source, there should be a quantity of water in gallons while period of supply, tankers specification, license and criteria for drivers have been specified in the rules. The cabinet approved grant of charter to Government College University, Hyderabad.