Mughal Iron & Steel Industries Limited has joined a consortium with Fast Cables, AKD Securities and AJCL (Private) Limited to participate in the privatization process of Gujranwala Electric Power Company (GEPCO).
The company’s board has approved its participation in the consortium, with AKD Securities appointed as the lead member to represent the group and conduct business during the privatization process.
Mughal Steel has also obtained the Request for Statement of Qualification issued by the Privatization Commission for the GEPCO transaction, marking an initial step toward participating in the bidding process.
However, the company clarified that its involvement does not currently create any binding obligation to complete the transaction.
Its participation remains subject to several conditions, including pre-qualification by the Privatization Commission, completion of due diligence and approval from relevant corporate and regulatory authorities.
GEPCO Privatization Process
GEPCO is among three state-owned electricity distribution companies included in the government’s first phase of the DISCO privatization program.
Faisalabad Electric Supply Company (FESCO) and Islamabad Electric Supply Company (IESCO) are the other two companies included in the initial batch.
Under the government’s privatization plan, private investors may acquire between 51% and 100% ownership of the distribution companies, along with management control.
The initiative is aimed at improving the performance of the electricity distribution sector and reducing the financial burden associated with state-owned power companies.
Focus on Efficiency and Power Losses
The government expects private-sector participation to help improve operational efficiency, reduce electricity losses and modernize distribution infrastructure.
The privatization process is also intended to improve customer services and strengthen the overall financial and operational performance of the distribution companies.
For Mughal Steel and its consortium partners, participation in the GEPCO process provides an opportunity to enter the power distribution sector as the government moves forward with its broader privatization agenda.
The consortium will now have to complete the required qualification and due diligence stages before it can proceed further in the transaction.
Mughal Steel Joins GEPCO Privatization Consortium
