Muzaffargarh solar plant land: Power Div asked to raise Rs930m from its own unutilised funds

ISLAMABAD: Ministry of Planning, Development and Special Initiatives has asked Power Division to use its own unutilized funds for FY 2022-23 to enable payment of Rs 930 million for acquisition of land for 600-MWp solar power plant, well informed sources told Business Recorder.

Prime Minister Office (PMO) had reportedly directed Ministry of Planning, Development and Special Initiatives (M/o PD&SI) to make Rs 930 million available through re-appropriation for land acquisition in connection with the planned 600-MW solar power plant at Muzaffargarh.

Sarah Saeed, Special Secretary to Prime Minister, in a letter to Secretary Planning, Development and Special Initiatives, stated that the Prime Minister has desired that Ministry of Planning, Development and Special Initiatives may provide funds to the tune of Rs.930 million through re-appropriation for land acquisition in connection with the planned 600-MW solar power plant at Muzaffargarh, in view of the justification provided by Power Division.

Planned 600MW solar power plant: PMO ‘compels’ ministry to make Rs930m available

PMO had also asked Planning Ministry to consult Power Division for financial phasing, if possible and requested a report to be submitted for the perusal of the Prime Minister.

Ayaz Ali Sakhani, Deputy Chief, Ministry of Planning, Development and Special Initiatives, in a letter to Secretary Power Division stated that he has been directed to refer to the Prime Minister’s Office U.O of April 03, 2023 and Ministry of Planning, Development and Special Initiatives OM of March 28, 2023 on this issue to say that the portfolio of Power Division has been examined and total revised Rupee allocation for Power Division is Rs 20.2098 billion against which an amount of Rs 15.441 billion has been authorized by this Ministry for release up to the 3rd quarter of CFY.

Power Division has released/ sanctions of Rs 13.676 billion and utilization is for only Rs 10.275 billion as on April 05, 2023 as per SAP system.

According to Ministry of Planning, Development and Special Initiatives, it has found that there are a number of projects where substantial allocations exist; however, low releases and utilization have been observed. Hence, there is likelihood of savings against unreleased/ unutilized funds against certain projects budgeted under Power Division in PSDP 2022-23.

Foregoing in view, Power Division has been requested to meet the demand of Rs 930 million for “land acquisition for installation of 600-MW Solar Power Plant at District Muzaffargarh” though re-appropriation/ adjustment from likely savings within power sector portfolio under intimation to Planning Minister and the Prime Minister’s Office.

Copyright Business Recorder, 2023