Wednesday, October 28, 2020

Planning ministry gets control of SIDCL

Despite the reluctance of ministries, the Sindh Infrastructure Development Company Limited (SIDCL) has been placed under the control of the Ministry of Planning, Development and Special Initiatives.

SIDCL has been shuttling between different ministries as no ministry is ready to take it under its administrative control. It was earlier shifted to the Cabinet Division from the Ministry of Communication. Now, it has been shifted to the Ministry of Planning for a one-year period despite its opposition. It will be reviewed after a year as to which ministry the company should be transferred.

Sources told The Express Tribune that in a recent cabinet meeting, the Cabinet Division tabled a summary, seeking the transfer of SIDCL to the planning ministry. But the planning secretary opposed it.

However, Minister for Planning and Development Asad Umar agreed to take its control for a year.

The Cabinet Division pointed out that SIDCL, previously KIDCL, was a public limited company established in June 2015 under Section 32 of the Companies Ordinance 1984 for undertaking mega infrastructure projects in Karachi.

In February 2019, the administrative control of the company was shifted from the Ministry of Communication to the Cabinet Division.

Due to the enhanced scope of the company to build infrastructure in Sindh rather than Karachi alone, its nomenclature was accordingly changed from KIDCL to SIDCL in 2019.

On August 28, 2020, a presentation on the current portfolio and activities of SIDCL was given to the prime minister.

During discussion, it was agreed, in principle, that SIDCL may be placed under some other relevant ministry/ division having requisite technical expertise, especially in project management, monitoring and evaluation, to better manage the portfolio in accordance with the mandate of SIDCL.

The prime minister directed to place the case before the federal cabinet for amendments to the Rules of Business 1973 for transferring SIDCL from the Cabinet Division to the planning ministry at the earliest. The Cabinet Division sought approval of the cabinet to place SIDCL under the administrative control of Planning, Development and Special Initiatives Division, and make necessary amendments to Schedule-II of the Rules of Business 1973.

During deliberations, the planning secretary expressed reservations that his division did not have any field formation to effectively oversee the implementation of infrastructure projects.

Some of the cabinet members were of the view that the Communication Division was the most appropriate division for the placement of SIDCL.

The communication minister disagreed, citing that the scope of SIDCL had been enhanced to undertake projects of irrigation, public health, etc in which the Communication Division had no expertise.

The planning minister suggested that his division could take control of the company for one year and thereafter its retention with the Planning Division or transfer to some other appropriate division could be reviewed. The cabinet reviewed a summary titled “Placement of SIDCL under the Administrative Control of Ministry of Planning, Development & Special Initiatives”, dated October 14, 2020 and submitted by the Cabinet Division, and approved it.

After a year, a review will be made to either continue with the arrangement or transfer SIDCL to some other appropriate division. The Cabinet Division will, accordingly, make an amendment to the Rules of Business.

Published in The Express Tribune, October 28th, 2020.

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