Govt considers sending legal notice to Associated Group
Company fails to donate LPG plants, but says it is not legally bound.
“Associated Group is not legally bound to donate the plants and AG or any AG company has not signed any agreement with the government,” says company's spokesperson.
ISLAMABAD:
The government is considering sending a legal notice to the Associated Group for retreating from its commitment, given to previous government, to donate liquefied petroleum gas-air mix plants for installing and meeting energy needs of far-flung areas of the country.
According to sources in the Ministry of Law and available documents, the government is seeking the opinion of the law ministry whether a legal notice can be served on the group.
The Associated Group is a private company engaged in LPG production and marketing. In a presentation to then president Pervez Musharraf and the prime minister on March 22, 2006, the company committed to providing five LPG-air mix plants free of charge for their installation in remote towns identified by the government.
These LPG plants were part of a project named “Village gasification through LPG-air mix and CNG technology”, launched by the previous government in an effort to supply gas to villages where pipeline network of gas utilities – Sui Southern Gas Company (SSGC) and Sui Northern Gas Pipelines Limited (SNGPL) – had not reached.
A summary was approved on August 23, 2007, which said the Associated Group would provide five LPG-air mix plants to SSGC and SNGPL free of charge in accordance with the specifications and with civil works, standby generator, firefighting system installation and commissioning.
The company would also transport and deliver LPG to the plants at the ex-plant price with transportation charges.
According to the documents, the Associated Group responded that facilitation measures for setting up LPG-air mix plants were briefly discussed during the tenure of the previous government. However, the plan did not make progress.
The Associated Group’s management argued that over the last few years Sui gas companies had established their own LPG-air mix facilities at various locations across the country. Keeping in view the facts and material changes in the LPG sector since then, it said, the original brief discussion on the subject was outdated.
“Associated Group is not legally bound to donate the plants and AG or any AG company has not signed any agreement with the government,” the company spokesperson said.
Published in The Express Tribune, February 22nd, 2013.
Like Business on Facebook to stay informed and join in the conversation.
The government is considering sending a legal notice to the Associated Group for retreating from its commitment, given to previous government, to donate liquefied petroleum gas-air mix plants for installing and meeting energy needs of far-flung areas of the country.
According to sources in the Ministry of Law and available documents, the government is seeking the opinion of the law ministry whether a legal notice can be served on the group.
The Associated Group is a private company engaged in LPG production and marketing. In a presentation to then president Pervez Musharraf and the prime minister on March 22, 2006, the company committed to providing five LPG-air mix plants free of charge for their installation in remote towns identified by the government.
These LPG plants were part of a project named “Village gasification through LPG-air mix and CNG technology”, launched by the previous government in an effort to supply gas to villages where pipeline network of gas utilities – Sui Southern Gas Company (SSGC) and Sui Northern Gas Pipelines Limited (SNGPL) – had not reached.
A summary was approved on August 23, 2007, which said the Associated Group would provide five LPG-air mix plants to SSGC and SNGPL free of charge in accordance with the specifications and with civil works, standby generator, firefighting system installation and commissioning.
The company would also transport and deliver LPG to the plants at the ex-plant price with transportation charges.
According to the documents, the Associated Group responded that facilitation measures for setting up LPG-air mix plants were briefly discussed during the tenure of the previous government. However, the plan did not make progress.
The Associated Group’s management argued that over the last few years Sui gas companies had established their own LPG-air mix facilities at various locations across the country. Keeping in view the facts and material changes in the LPG sector since then, it said, the original brief discussion on the subject was outdated.
“Associated Group is not legally bound to donate the plants and AG or any AG company has not signed any agreement with the government,” the company spokesperson said.
Published in The Express Tribune, February 22nd, 2013.
Like Business on Facebook to stay informed and join in the conversation.