Tube wells efficiency plan runs into snags

The tube-wells efficiency programme, designed for conservation of 1500 MW electricity, has run into difficulties following imposition of 19 percent GST and federal excise duty (FED) by the government on agriculture machinery and equipment, it is learnt.
Sources told Business Recorder that the Planning Commission had informed Prime Minister Yousaf Raza Gilani during a briefing on energy crisis that tube-wells efficiency improvement program was targeting nearly a quarter million electricity-run tube-wells across the country. The cost of the program escalated considerably after imposition of GST and FED on agricultural equipment.
Officials in Planning Commission reportedly said that "program has run into serious difficulties on account of the levy of 19 percent GST and FED on all agricultural machinery and equipment". Majority of the farmers, despite registration indicating their willingness to support the replacement program are reluctant because 50 percent of the cost, about Rs 0.3 million, to be borne by them, increased considerably.
In view of the problem, officials said, a proposal was prepared by Enercon, suggesting that the cost borne by the farmers should be reduced to 20 percent, and remaining 30 percent be arranged from Zarai Taraqiati Bank (ZTBL) through soft term loans. The Planning Commission reportedly requested consideration of the recommendation of Enercon as implementation of the program could save 1500 MW power.
The tube-wells efficiency improvement program was launched jointly by the Ministry of Water and Power and USAID. The pilot phase was launched five months back in Multan Electric Power Company (Mepco) and targeted nearly 11,000 tube-wells, and instead of the initially estimated 45MW savings, the program is now set to capture 70MW of power for the system.
The Enercon had moved a draft summary to the Cabinet through ICT administration for strengthening the institution of Motor Vehicle Examiners in the country. The initiative is in limbo and the government needs to own the initiative aimed at fuel efficiency savings and climate change benefits through early redesign of MVE regime.