PSM seeks NOC from Nepra to transfer generation licence to Steel Corp

ISLAMABAD: Pakistan Steel Mills (PSM) has applied to National Electric Power Regulatory Authority (Nepra) for a No Objection Certificate (NOC) for transfer of its generation licence to its newly established subsidiary company, i.e., Steel Corp.

The government has established the Steel Corp as part of its plan for revival of the PSM through private sector. Four or five parties have shown interest in purchase of stakes. Both the Ministry of Privatisation and Ministry of Industries and Production are jointly working for the revival of PSM. In response, the Nepra has asked PSM to get the term of generation licence extended before starting any procedure of transfer of its assets according to section 27 of the NEPRA Act.

According to PSM, on July 28, 2021, due to its closure since 2015, it had elaborated the impediments being faced to apply for extension of terms of its generation licence as stipulated in regulation -13 of Nepra Act; however, it expressed its consent for renewal after the revival by paying all outstanding generation license fees till date.

PSM has claimed that in spite of all elaborations, the Nepra has again asked for the renewal of licence prior to any other modification.

PSM: PC declines to identify interested parties

In view of communications, PSM has applied for generation licence renewed for another term. As PSM could not provide the required information as stipulated in Part VI (Extension or Renewal of Term of Licence) of Nepra licensing (Application, Modification, Extension and Cancellation) Procedure, 2021 due to a long term shut down, the Nepra has been requested to renew the licence considering previously declared parameters, characteristics and information because the aim of renewal is only to get NOC for transfer of licence to its own subsidiary company.

According to Company Secretary of PSM, the renewal application along with the fee cheque amounting to Rs. 759,720/- calculated according to the formula given in indexation for fee of Nepra licensing (Application, Modification, Extension and Cancellation) Procedure, 2021 has been submitted to the regulator.

Copyright Business Recorder, 2021