SHC orders petroleum ministry to provide Rs4.912bn to SSGC within a week
KARACHI: The Sindh High Court on Monday directed the Federal Ministry of Petroleum and Natural Resources to provide Rs4.912 billion funds to the Sui Southern Gas Company (SSGC) within a week for gasification of villages in Sindh.
A two-judge bench headed by Justice K.K. Agha also directed the SSGC to commence the work within seven days after receipt of the funds to provide free of cost gas to the remaining villages located within five kilometres of each exploration and production (E&P) site and to complete the exercise within six months.
Hearing a set of petitions regarding non-provision of gasification and welfare funds for the villagers despite Supreme Court’s directives issued in December 2013, the bench said that by showing judicial restraint and granting a last chance, it was suspending a show-cause notice issued in an earlier hearing to the petroleum secretary to enable him to comply with the order.
SSGC told to provide free of cost gas to villages around exploration sites as per SC order
However, it warned that if the funds were not released within seven days, the show-cause notice would stand revived and he would have to explain why the judgement was not complied with despite the passage of six years.
The bench also directed the petroleum secretary, Sindh chief secretary and energy secretary, SSGC chairman, Oil and Gas Regulatory Authority (Ogra) chairman and all deputy commissioners of Sindh to be in attendance on Feb 17 for information and compliance.
The bench referred to federal government’s statement that it did not have funds for making any such grant, and said in its order that shortage of funds was not the court’s concern; the SC order had to be implemented.
“Keeping in view that the right to gas especially in cold areas during winter especially when gas fields are located within 5KM of a village is a fundamental right of the said villagers which forms a part of the right to life which is guaranteed under the Constitution and which is in consonance with an Islamic Welfare State which this government is laudably intent on providing based on the State of Madina,” it added.
The bench noted that according to the SSGC, around 70 per cent of the gas produced in Pakistan came from gas fields of Sindh. It said that keeping in view the 18th Amendment which was aimed at giving more provincial autonomy, there should be no shortage in providing such gas to the villages in Sindh as the main issue was of cost and not of availability.
The bench further observed that as per the decision of the Council of Common Interests (CCI), gas distribution companies were obligated to pay for provision of gas to such villages, but having found the CCI decision not be legally binding in its current form, therefore, as per the judgement of the apex court, it was the ministry of petroleum and natural resources that had to bear the cost.
It appeared from the record that the SSGC had been proceeding on providing gas to the areas which met the cost criteria, but it was not obliged to pay if the cost exceeded the criteria unless the federal government made up the difference and in the past, the federation had been making up the difference by way of grants, the bench added.
Published in Dawn, February 4th, 2020