Finance Division allowed to release funds for Punjab power plants
The Exec-utive Committee of National Economic Council (ECNEC) has allowed Finance Division to release development funds for two RLNG power plants in Punjab in the absence of interpretation of Article 154 of the Constitution.
According to Article 154 of the Constitution, the Council of Common Interests (CCI) shall formulate and regulate policies in relation to matters in Part-II of the Federal Legislative List, which deals with matters related to natural resources, etc.
A meeting of the ECNEC chaired by Finance Minister Ishaq Dar was submitted by Ministry of Planning, Development and Reforms that the projects are at a critical level of their implementation and an amount of Rs25 billion has already been released. While a request for the release of an additional Rs25 billion has already been accorded, therefore, ECNEC is requested to allow Finance Division to release development funds to the above projects in the absence of interpretation of Article 154 of the Constitution as requested by the Ministry of Water and Power.
The meeting was also requested that Ministry of Petroleum and Natural Resources should also be directed to take immediate steps to resolve the matter relating to interpretation of Article 154 of the Constitution because almost one year has been passed since the ECNEC constituted a committee to resolve the matter.
ON February 2016, the ECNEC approved the projects and constituted a committee in the chair of minister for petroleum while other members of the committee were minister for water and power, Attorney General, provincial finance ministers and secretary law to resolve the issue of the Article 154 of the Constitution within one week.
However, reports of the committee are still awaited and Ministry of Finance has asked Ministry of Water & Power to provide unconditional authorisation for the release of 2nd tranche of Rs25.563 billion for the above stated two projects - 1230 MW combined cycle power plant at Haveeli Bhadar Shah District Jhang and 1223 MW combined cycle power plant at Balloki, Kasur.
Subsequently, the Ministry of Water and Power has approached the Ministry of Planning, Development and Reforms for issuance of unconditional authorisation letter in favour of National Power Park Management Company Ltd (NPPMCL) on the plea that interpretation of Article 154 of the Constitution with a reference to treatment of imported RLNG falls under the purview of Ministry of Petroleum. Neither Ministry of Water and Power nor NPPMCL is in a position to resolve the issue immediately, the ministry added.
Ministry of Water and Power has proposed to de-link the issue of interpretation of Article 154 of the Constitution for the release of funds for Balloki & Haveli Bahadur Shah power projects and wanted to approve authorisation for release of Rs25.563 billion in favour of NPPMCL to meet the contractual requirements of the projects which are at a critical stage of completion.
Ministry of Planning, Development and Reforms was also requested to take up the case at appropriate level to resolve the issue of interpretation of Article 154 of the Constitution.
No content from Business Recorder shall be reproduced, published, broadcast, rewritten for broadcast or publication, or redistributed directly or indirectly in any medium.
Business Recorder shall not be responsible or held liable for any error of fact, opinion or recommendation and also for any loss, financial or otherwise, resulting from business or trade or speculation conducted, or investments made, on the basis of the information posted here. Nor shall Business Recorder be held liable for any actions taken in consequence." >Copyright Business Recorder, 2017