PPP comes to the rescue of failed state entities
View(s):Rising public debt and spending rationalisation has prompted the present government to bring public-private partnership (PPP) to the forefront in revitalising loss-making and defunct state-owned enterprises.
The Ministry of Small and Medium Business and Enterprise Development, Industries and Supply chain Management will be reviving all crippled state owned entities through PPPs, a senior official of the ministry said.
The government has made it clear that it would not subsidise loss- making and debt-ridden state-owned corporations and enterprises.
Under this initiative, the Kahatagaha Graphite Lanka Ltd will be restructured with the involvement of a private investor. The ministry will call competitive bids to find a prospective private investor to add value to the mined graphite at the Kahatagaha mine.
At least 65 – 70 metric tons of graphite per month is excavated at the Kahatagaha mine. Sri Lanka supplies only 7 per cent of the graphite requirement in the global market.
The government has recognised value addition as the only way to enhance the export value of graphite and the cabinet had approved the proposal to seek expressions of interest from prospective investors.
A senior official revealed that although the world market price of one metric ton of Kahatagaha graphite was US$ 2000, 1 kg of graphene, an extract from graphite, could be sold for $5000.
If Sri Lanka could be able to produce graphene adding value to graphite, it would be a gold mine for the country, he said.
A PPP arrangement has been proposed for the development of export “value added” products made from mineral sands mined by Lanka Mineral Sands Ltd.
Eastern Valaichchenai Paper Mills and North Saltern are also in the pipeline for restricting process of the present government.
The Sri Lanka army has been entrusted with the task of renovating the Valaichchenai Paper Mills and the work is now underway.
The Ceylon Ceramic Corporation factory at Oddusudan, in the Mullaithivu area will be re-invigorated, through a joint-venture operation with Samson Rajarata Tile Pvt Ltd, a subsidiary of the DSI Samson Group.
According to Ministry sources the government will continue to own the unit while teaming up with Samson Rajarata Tile in the production process.
(BS)