ISLAMABAD: The federal cabinet on Wednesday approved the gas load-management plan under which gas supply to the industrial sector and CNG plants will be suspended for two days a week from November 15 till March 15 in order to save enough gas for domestic use. The cabinet also approved the sugar policy for 2009-10 which envisages import of one million tonnes of sugar — half a million tonnes of raw sugar and 500,000 tonnes of refined sugar - for the current season. The cabinet deferred discussion on the 'austerity plan' till the next meeting as three major issues, gas load-management, sugar and paddy policies consumed four hours. The special cabinet meeting, presided over by Prime Minister Yousuf Raza Gilani, was also attended by the chief ministers of all the four provinces.

Under the gas load-management schedule, industries and CNG stations will remain closed for two days every week. According to a cabinet source, the load-management will save 120 mmf of gas, which will be supplied to domestic consumers.

"As per the decision of the federal cabinet, the Sui Northern Gas Company will undertake gas load-management in the winter season by dividing the industrial sector into four zones in areas under the company's management," said Information Minister Qamar Zaman Kaira while briefing journalists after the cabinet meeting.

Similarly, he said, CNG stations in Punjab and the NWFP will be ordered to remain closed for two days every week.

Kaira said it was decided to stop gas supply to the industrial sector for two days a week to overcome shortage. Gas supply to domestic and commercial consumers will continue without any interruption, he said.

The gas supply will remain suspended to Lahore, which was divided into two zones, as follows: Lahore-1 on first and second day of the week, Lahore-2 on day three and day four, Faisalabad on day five and Multan, Gujranwala, Islamabad, Peshawar and Abbottabad for the next two days. "The industry will use alternative fuel on these two days," he said.

Similarly, he said, gas supply to CNG stations will also remain suspended for two days a week. He said the schedule for gas supply for urea producing factories will be chalked out for one month. "Gas will be supplied to these factories as raw material without any interruption while there will be cut on gas fuel," he added.

Kaira said no new industrial gas connection would be given between December 2009 and December 2010. He said gas supply for new villages and cities will not be approved for the time being but the Balochistan province, and the districts producing gas, will be exempted.

He said a decision has been taken to import the LNG to include it into the system though a period of 18 months is required for this. Besides, the import of LPG is also being increased to ensure uninterrupted supply to consumers.

The cabinet also approved the sugar policy for the year 2009-10. The minister said the sugar production for the next year is likely to be three million tonnes as against the demand of 4.2 million tonnes. So it was decided to import 500,000 tonnes of raw and 500,000 tonnes of refined sugar.

Moreover, the provincial governments have been asked to look into the possibility of producing sugar from other commodities besides sugarcane. He said permission has been given to produce 'Gur' but its export would not be allowed.

He said a committee, headed by the finance minister, is working to resolve the issue of sugar supply on fixed price. Answering a question, he said there is no sugar shortage in the country but the issue is provision of sugar at cheap rates and the federal government is formulating its policy with inputs from the Benazir Income Support Programme, the Utility Stores Corporation and the provincial governments.

He said the meeting directed the State Bank to formulate a policy to resolve the issue of delayed payment to sugarcane growers. Kaira said it was decided that the chit given by mills owner to the growers should be used as negotiable instruments and growers will be able to get cash from banks against these chits.

The minister said sugar mills have the capacity to generate 1,000 to 2,000 megawatt of electricity and the owners have been asked to continue generation of electricity throughout the year by using coal after they have consumed molasses.

He said PASCO has been directed to purchase one million tonnes of paddy from farmers. The cabinet decided that IRRI-6 would be purchased at Rs 600 per 40 kg, rice variety-385 at Rs 1,000 per 40 kg and Basmati at Rs 1,250 per 40 kg.