Power Division tells Senate body: Circular debt increases by Rs134bn in current fiscal year

The Power Division on Monday informed the Senate Standing Committee on Power that the current fiscal year had seen an increase of Rs 134 billion in circular debt that could reach to Rs 300 billion, if timely measures were not taken.

Briefing the committee, which met under the chair of Fida Muhammad Khan, the officials of the Power Division said the circular debt has been decreased from Rs34 billion to Rs12-14 billion per month. According to the briefing, the government has to provide subsidy of Rs 43 billion for six months to tackle circular debt. An amount of Rs802 billion of the circular debt is with power holding companies, the committee was informed.

The committee was informed that total annual budget of the Power Division is Rs 265 million out of which Rs 95 million were utilized until December, 2019. The total budget for development projects in the current fiscal year is Rs 75 billion, out of which the federal government has allocated Rs 10 billion for development projects in Power Division and Rs 226 billion have been allocated for power subsidy.

The committee recommended uniformity in power tariff rates through an "in-built mechanism". The committee was also informed that Gwadar electricity projects have been delayed for three months as a precautionary measure against COVID-19 (corona virus) keeping in view that Gwadar has the active presence of Chinese manpower.

Sitara Ayaz from the Awami National Party (ANP) spoke about non-provision of electricity connections to the newly-established industrial units in Gadoon Amazai Industrial Area. She said the domestic consumers in Gadoon have to face load shedding for eight hours on a regular basis. The officials concerned assure the committee that the matter would be resolved by the coming summer.

While discussing the Thar Coal Project in Sindh, the committee was informed that permission from the Environment Protection Agency (EPA) Sindh on environmental impact was imperative to commencement of all the projects.

The chairman committee summoned officers concerned from the Sindh government and other stakeholders in the next meeting. While taking up the matter of outstanding dues on account of energy purchase price and indexation of 81 megawatts Malakand-III HPS (Hydropower Station) and 18MW Pehur HPS, the committee stressed the need for Pakhtunkhwa Energy Development Organization (PEDO) payments to be at par with other parts of the country.

Discussing non-provision of electricity connections to the newly-established industrial units in Dargai Industrial Estate, the committee was informed that installation of additional 1x20/26 MVA Power Transformer and 132 KV Grid Station Dargai was approved in December 2018. However, there is no space available for installation of the said transformer.

The chief engineer (Hydel) Warsak, WAPDA (Water and Power development Authority) has been requested for provision of land for this project, the committee was informed.

The senators including Nauman Wazir Khattak, Sitara Ayaz, Shibli Faraz, Muhammad Akram, Gianchand and senior officers from the Power Division, National Electric Power Regulatory Authority and related departments attended the meeting.