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Peco's Badami Bagh Works

privatized in 9 packages, 5 parcels

for Rs 234.375 million

SAQLAIN IMAM

LAHORE: The Privatization Commission finally managed to liquidate the Badami Bagh Works of Pakistan Engineering Company (Peco) on Sunday at the Lahore Chamber of Commerce and Industry where nine packages of the plant/machinery and five parcels of lands have almost been sold out at about Rs. 234.375 million.

The buyers of the dismemberd Peco Badami Bagh Works have been required to pay five percent of the highest bid for each parcel or package within seven days of the acceptance of the bid, 21 percent within 42 days, 14 percent within 48 days and the remaining 60 percent through a bank guarantees for three years.

The Badami Bagh Works which once was believed to have an estimated value over Rs. 900 million, now stands sold out at Rs. 230.375 million. It is interesting to note that the government had been pressing all bidders to accept all liabilities and labour along with the units that PC proviatized.

However, in the case of Peco Badami Bagh Works, the condition of accepting liabilities and labour has been waived. Moreover, the once a great engineering unit of the country, which manufactured several engineering items for Wapda and Railways, has been privatized in such a manner that its potential to manufacture large items would come to an end.

Some packages of plant/machinery have been auctioned out hardly 25 percent above the earnest money of the parcel and some even below the earnest money. The real estate, parcels of land, apparently elicited a better price during the open bidding, which, however, was - less than the market value of the land in that industrial town of the provincial metropolis.

According to a source details of the auctions of packages are as follows:

PACKAGE 1 - Earnest money: Rs. 500,000; highest bid Rs. 2.5 million and the bidder Maqsood. This package includes plant and machinery installed in cast iron factory; wood pattern shop; fire brick shop; and metal pattern shop.

PACKAGE - Earnest money Rs. 100,000 highest bid Rs 1.5 lakh and the bidder is Maqsood. This package includes left-over machines of fabricating shop; compressor stations, complete with air-reservoir and company.

PACKAGE 3 - Earnest money: Rs. 500,000; highest bid Rs. 2.6 million and the bidder is Haji Maqsood and Brothers. This package includes machinery and equipment from: hardware and heat treatment, electrical maintenance shop, hot forging and press section, and technical school.

PACKAGE 4 - Earnest money: Rs. 500,000 highest bid 300,000 only and the bidder is Haji Maqsood and Brothers. This package includes machinery and equipment for hot rolling mills (capacity 8", 14", and 16") also included in this package are supplies of rolling mills parts.

PACKAGE 5 - Earnest money: Rs. 500,000 highest bid Rs. 5.5 million and the bidder is Asif Brothers. This package includes machinery and equipment from general maintenance shop, powerloom shop, general machine shop. This package has machinery and tools for the manufacture of powerlooms upto 120" width.

PACKAGE 6 - Earnest money: Rs. 500,000; highest bid for (A) is Rs.2.5 million and the bidder is Novelty Enterprises; while the highest bid for (B) is Rs. 2 million and the bidder is Asif Brothers. This package includes machinery and equipment from machine tool shop, central tool room. This is the largest collection of basic and special purpose imported machine tools.

PACKAGE 7 - Earnest money: Rs. 500,000; highest bid Rs. 1.7 million and the bidder is Ch. Barkat Ali. This package includes all machines and necessary tools, equipment, parts and patterns for producing of S. S. D. engines.

PACKAGE 8 - Earnest money: Rs. 500,000; highest bit for (A) is Rs. 2.8 million and the bidder is Ch. Barkat Ali while the highest bid for (B) is Rs. 2 million and the bidder is Novelty Enterprises. This package contains a well-balanced set of machines for the production of HSD engines on cost competitive basis. The package also includes equipment needed for production of high-speed diesel engines.

PACKAGE 9 - Earnest money: Rs. 100,000; highest bid Rs. 1.25 lakh and the bidder is Ch. Barkat Ali. This package contains machines of miscellaneous nature which are available in the factory as a whole, located at various points.

Total money for nine packages is Rs.24,375 million. PARCEL 1 - Highest bid is Rs. 20 million, and the bidder is Maqsood Brothers. Land area 56.294 kanals (covered area 177,700 square feet) cast iron foundry, pattern shop, and store, fire brick shop, maintenance shop for cast iron foundary and fire bricks shed.

PARCEL 2 - Highest bid is Rs. 21 million and bidder is Maqsood Brothers. Land area 43.979 kanals (covered area 176,500 square feet). Main store heat treatment section, technical schools, electrical maintanence shop, forging shop, structural division, sheet pressing shop, galvanized plant shed.

PARCEL 3 - Highest bid is Rs. 77 million and bidders was Chaudhry Rafiq. Land area is 65.39 kanals (covered area 257,200 square feet) maintenance shop (old millwright shop), tubewell section, defence cell store, (old agriculture store) general machine shop, open yard, general engineering shop, steel foundery, construction machinery rolling mills, employees quarters, cycle stand.

PARCEL 4 - Highest bid was Rs. 55 million and bidder was Asif Enterprises. Land area 41.45 kanals (covered area 196,400 square feet). Packing despatch and spare parts department, extra shed, pump division, textile machinery division main office and design department, time office and dispensary, Peco sales office (old railway staff office), car and shed, petrol pump shed, powerloom fettling shed.

PARCEL 5 - Highest bid was Rs. 37 million and bidder was Chaudhry Barkat Ali. Land area 59.535 kanals (covered area 187,500 square feet). Finished parts store, machine tool division, diesel engine division (slow speed), diesel engine division (high speed), central tool production, planning and control department, quality assurance and canteen.

The bidding was conducted by Member (Account) P. C. Syed Shahid Islam, Member Laeeq Ahmad, Secretary, P. C. M Zubair Kidwai and Deputy Secretary Anwar Hafeez.