Government Grants Brownfield Status to Dewan Farooq Motors Limited

The Ministry of Industries and Production (MOIP) has decided to grant Brownfield status to Dewaan Farooq Motors Ltd (DFML)/ Dewan Dachan Motors Ltd (DDML) due to special intervention of Minister for Industries and Production, Ghulam Murtaza Khan Jatoi, in light of unanimous decision taken by the Auto Industry Development Committee (AIDC).

It was reported by Business Recorders that Engineering Development Board (EDB) had changed minutes of AIDC to provide special treatment to one of the automakers. The minutes of the AIDC meeting shared by EDB had a fair share of controversy, as respect to agenda four, the request for Brownfield Investment under Automotive Development Policy 2016-21 by Dewan Farooq Motors had been cleared by the house without any change in policy.

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Strangely, the decision stated that “keeping in view the spirit of the existing policy for revival of closed down units, the AIDC unanimously supported the case of M/s Dewan Farooq Motors for suitable amendments in the ADP 2016-21 for availing benefits under the Brownfield category.” According to sources, reason for the decision can be traced to another agenda which relates to Al-Haj FAW”s demand for what was not possible in the present policy framework. The AIDC could not and did not support a change in the policy as it was strongly felt that continuity in policy was more important than temporary loss or benefit for some players in the short run.

According to the minutes of AIDC meeting held on 29th November 2017, Dewan Farooq Motors Ltd (DFML)/ Dewan Dachan Motors Ltd (DDML) had approached Ministry of Industries and Production (MoI&P) in its letter 14th July 2016 for reconsideration of their request for grant of Brownfield status under ADP 2016-17.

Ministry of Industries and Production forwarded the request of DDML to Engineering Development Board (EDB) for reconsideration in view of the reservations submitted by the company. Because of this policy announcement, the existing OEMs protested that it didn’t provide any benefit to them if they introduced new variants.

From Business Recorders

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