20000121

Govt to help make sick

solvent extraction

units operational

ISLAMABAD: The federal government has decided to help the owners of sick solvent extraction units to make their plants operational once again.

Official sources told Fortuna, the Agriculture Ministry has decided to approach the Governor State Bank of Pakistan (SBP) for his help to revive the industry.

According to an official estimate, as many as 15 solvent extraction units have been closed in the recent past due to non availability of working capital to purchase the produce from growers.

Sources said the ministry has written to the State Bank governor asking him to direct the Industrial Development Bank of Pakistan (IDBP) to extend financial assistance to the owners of sick solvent units which are ready to pledge property against loans to revive their units.

Sources said the ministry has sought SBP directions to IDBP for provision of working capital loan of Rs 10 million to Mehran solvent extraction unit in Larkana so that the plant can become functional and play its role in oilseed development through lifting of oilseed produce.

According to sources, the ministry has pointed out to the SBP governor that Pakistan Oilseed Development Board (PODB) is striving to increase areas under oilseed crops so as to reduce the commodity's import bill. It said the solvent extraction industry as the end users and prospective buyers of the farmers produce plays a major role in the expansion of oilseed crops.

Minfal has further told the SBP that the PODB in collaboration with All Pakistan Solvent Extraction Association has chalked out comprehensive programme to cover maximum areas during spring plantation of the sunflower.

Now, requesting financial help for the messrs Mehran, the ministry has informed the State Bank that it was established with the financial assistance of the IDBP and is facing a serious financial crunch due to which it has not been able to procure the produce from the farmers.

The Minfal has told the SBP that MS Mehran is ready to pledge its property worth Rs 45 million as additional security along with the said plant.ÑFortuna