FAISALABAD: After a struggle of several years, the Faisalabad Development Authority (FDA) administration has succeeded to get approvalof the Faisalabad Electric Supply Company (Fesco) to make payment of Rs1.94bn for electrification of the entire FDA City through four installments.

The Faisalabad Electric Supply Company (Fesco) has been demanding the electrification amount at once, refusing to allow installments. However, the FDA had sought permission for pay-ment in instalments due to the nnancial constraints.

The FDA even tried to broker a deal with Fesco for plots against the payment of the electrification but that plan did not materialise.

It also approached the Punjab government for Rs2bn loan for payment to Fesco which was not ready to receive payment in instalments. However, the issue of payment now stands resolved for the relief of the people who had purchased plots here.

On Nov 14, Fesco board of directors, chaired by Faig Javed, allowed the FDA to make payment in four instalments. The FDA has already deposited Rs70m with Fesco a couple of years ago which would be adjusted in the first installment.

Under the electrification project, the FDA will pay Rs669m for two grid stations of 132kV, Rs400m for grid sharing charges and Rs87m for distribution network,inspection charges, consultancy charges and design vetting fee.

The FDA City is the biggest housing scheme of the district, comprising more than 1,800 acres with six blocks, having more than 11,000 plots. This scheme was announced in 2005.

The FDA, after paying the first instalment, will contact the National Transmission & Despatch Company (NTDC) within three months for construction plan of the grid station. Work on transmission line and grid station would start on the payment of the first instalment.

The distribution network, which is to be executed by the FDA, will not be taken over by Fesco unless all instalments and sharing cost of 220kV network is deposited.

A majority of the people who have purchased land in the FDA City could not construct houses due to the missing basic facility ofelectricity.

A couple of months ago, Fesco provided electricity to the whole A Block while partial supply was provided to F Block.

Magsood Ahmed, who has purchased a plot in the FDA City, has termed the scheme a dead horse whichhas inflicted colossallosses on the investors and the public.

He said the investors had failed to earn even a penny and the masses could not construct their houses due to ill-conceived policies of the FDA.

`The people lost confidence in the FDA City and forgot about their investment in it. The property dealers dealing with this housing scheme are asking the people to invest in other schemes to keep their investment safe.

How one would trust when the people attached to this scheme are spreading negative words about it, Mr Maqsood asked, however, pinning hope on the currentadministration which has succeeded in getting the electrification process approved.

Talking to Dawn, FDA Director General Yawar Hussain says the administration is under tremendous pressure owing to the financial condition of the FDA and to resolve the cash issue, three plans have been chalked out to arrange for funds for the electrification at the FDA City.

`The government has been approached for loan from commercial banks, a joint venture with any state institution at the FDA City and auction the commercial plots, Mr Hussain says and adds that the auction of commercial plots of the FDA City is being done and it would bring million of rupees to pay instalments of Fesco.

`Scores of bidders have taken part in the open auction and prices of plots would surge in the near future, following electrification,` he claims.