85 Sindh villages to get gas supply
The Council of Common Interests in 2017 directed that the expenditure involved in provision of gas to the localities within 5km radius of gas producing fields would be borne by the distribution companies. Photo: PID
In a bid to avoid contempt of court, the federal government on Friday approved Rs747.5 million in supplementary grant in an emergency meeting to provide gas connections for 85 villages in Sindh.
Finance Minister Shaukat Tarin chaired the Economic Coordination Committee (ECC) meeting through video link and approved the Ministry of Energy’s summary on supply of gas to the localities and villages within 5km radius of the gas producing fields.
It sanctioned Rs747.5 million in favour of the Petroleum Division for onward release to Sui Southern Gas Company (SSGC) for covering 85 villages and localities in the current fiscal year.
For fulfilling SSGC’s requirement of Rs747.5 million during the current fiscal year, the Petroleum Division had approached the Finance Division as well as the Planning Division but it was advised to approach the Cabinet Division to seek funds out of the portfolio of Sustainable Development Goals Achievement Programme (SAP).
The steering committee of SDGs (Sustainable Development Goals) last month decided that the Planning Division would be requested to allocate funds for supply of gas to the villages falling within 5km radius of the gas producing fields.
However, the Sindh High Court again took up the case of providing gas for the villages within 5km radius of the gas fields in Sindh and last month directed the petroleum secretary and finance secretary to appear before it on March 14, while reviving the show-cause notice of 2020.
The funds will be utilised to provide gas connections in the areas of Sanghar, Khairpur, Jamshoro, Badin, Dadu and Qambar Shahdadkot, according to the energy ministry.
SSGC and Sui Northern Gas Pipelines Limited (SNGPL) are supplying natural gas in the country through their extensive network of pipelines and serving millions of domestic consumers.
These two public-sector companies are responsible for expansion of the domestic network under the gas distribution development schemes approved by the government from time to time.
In order to undertake the gasification of towns, both companies prepare cost estimates and an in-house feasibility based on per consumer cost criteria approved by the ECC of the cabinet in 2008, whereby if a gasification project’s per consumer cost criteria exceeds the approved one, then the federal government has to fund the amount exceeding the criteria.
The total cost of 85 schemes is Rs992 million, of which SSGC will provide Rs238 million.
In respect of provision of gas to the villages, the Supreme Court in December 2013 directed the Ministry of Petroleum to ensure the implementation of PM’s directive of September 2003 and provide gas for all the surrounding localities falling within the 5km radius of all gas fields on a priority basis as directed in accordance with the law.
The Council of Common Interests in 2017 also directed that the expenditure involved in the provision of gas to the localities within 5km radius of the gas producing fields would be borne by the distribution companies.
Later, the Sindh High Court in 2018 sought the implementation of aforesaid orders of the Supreme Court to the extent of providing gas in the province of Sindh and passed an order in 2020, directing the Petroleum Division to make available the required funds.
The Sindh High Court issued a show-cause notice in respect of contempt of court but the Petroleum Division filed an appeal in the Supreme Court against the order of the Sindh High Court.
In the meantime, the Supreme Court suspended the show-cause notice of contempt of court issued by the Sindh High Court to the petroleum secretary, directing the high court to review its decision after hearing the parties.
Later, the ECC in 2020 approved a supplementary grant of Rs1 billion in favour of SSGC for undertaking phase-I of the project during financial year 2020-21.
Against that grant, SSGC undertook the gasification of 75 villages during FY21.
Published in The Express Tribune, March 12th, 2022.
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