Home / Government Institutions / Sindh Government to provide subsidy of Rs370 million to activate two Non Functional Gas Based Power projects in Sindh

Sindh Government to provide subsidy of Rs370 million to activate two Non Functional Gas Based Power projects in Sindh

Karachi, March 30, 2015 (PPI-OT): In order to reduce the long durational power load shedding in the interior Sindh, the Sindh Govt has proposed /agreed to provide total subsidy of Rs 370 million to activate two Non Functional Gas Based Power projects (NFGBPP) in Sindh. This subsidy was aimed to meet out their (NFGBPP) losses that they fear because of present low tariff rate.

The Sindh Govt also to provide guarantee to the management of these two Gas Based Power Projects for their payment from Power distribution companies to make these functional. This proposal of Sindh Govt was floated by Sindh Minister for Energy and Finance Syed Murad Ali Shah and it is to be submitted to the Federal Govt tomorrow. Power policy was discussed and deliberated and agreed by Public Private Partnership (PPP) Policy Board in its 14th meeting presided over by Chief Minister Sindh Syed Qaim Ali Shah today at CM House Karachi.

The PPP Policy Board in its meeting held here today also discussed other PPP Mode related development projects, specially of BRT, Transport and dualization of 13 Km link road between National High Way N-5 and Supper High way M-9 to implement but with the consent of Education City Board Karachi.

While deliberating on the proposal to reactivate two Gas Based Power projects, the Sindh Minister for Energy and Finance Syed Murad Ali Shah said that initially this proposal has been conceived to run two identified non Functional Gas Based Power Projects of “New Captives Power Projects” one each located at Dadu and Naudero.

Briefing the meeting, The Sindh Minister informed that Dadu Based Power Project has capacity to produce 16mw with the support of roughly estimated subsidy of Rs 140 million, while Naudero Power project is designed to produce 26 mw Power but needs subsidy of Rs 230 million to run. The proposal contains that power produced by these two Power Projects will be injected into the local 132 KV lines to increase the volume of Power Supply and reduce the long durational load shading.

He said that these power producing companies also needs the guarantee of their payment from the power distributing companies. He said that Sindh Govt was also ready to provide guranttee to them for their payment. He said that in case of Non Payment to the Power Producing companies from the power distributing companies likes HESCO and SESCO, the Sindh Govt will deduct the amount from the out standings of HESCO and SESCO at sourced and to pay the same to Power Producing companies.

During the discussion on the scheme for dualization of 13 km link road between National Highway and Super Highway, the Chief Minister Sindh Syed Qaim Ali Shah said that since this link road is passing from the area allotted to Educational City Karachi, as such this scheme is supposed to be implemented by taking the Educational City Board into confidence.

He also constituted 5 member committee comprised of Sindh Minister for Local Govt and Information Sharjeel Enam Memon, Sindh Minister for Finance Syed Murad Ali Shah his Special Assistant Umer Malik and two representative from Education City Board to work out on this project and submit their recommendation for implementation.

While discussing on the proposal for activating two Gas based Power Projects in Sindh to inject more power in the distribution lines, the Chief Minister Sindh expressed his apprehension over the hardship of long durational load shading being experienced by the people of Sindh. He said that Sindh Govt will do what it can, to provide rescue to the people of Sindh.

The Chief Minister Sindh directed the Sindh Minister for Energy and Finance Syed Murad Ali Shah to submit this proposal to Federal Govt in the meeting of Power Policy scheduled on March 31st, 2015 (today) at Islamabad so that this scheme should be materialized as soon as possible.

While deliberating on the BRT and Transport Projects the PPP Policy Board accorded approval of Hiring consultants for undertaking feasibility study and to prepare bidding documents for Bus operations and fare collection components of BRT related Green Line, Red Line and Orange line projects under the PPP mode.

Similarly the Board also gave go ahead signal to the provincial transport dept. for out sourcing the implementation on the Motor vehicle inspective project in pursuance of provincial vehicle (amendment) Act 2014 and to set up motor vehicle inspection units with Modern and well equipped facilities ad Divisional and District level.

The Sindh Minister for Local Govt Sharjeel Enam Memon, The Sindh Minister for Finance Syed Murad Ali Shah , The Sindh Minister for Works and Services Mir Hazar Khan Bijarani, Sindh Minister Health Jam Mehtab Dahar , Special Assistant to CM Umar Malik, Chief Secretary Sindh Muhammad Siddique Memon, Additional Chief Secretary P and D Muhmmad Wasim, The Secretary to CM Alumudding Bullo, Secretary Finance Sohail Rajput, Secretary Energy Agha Wasif , Secretary Transport Taha Farooqui, Secretary Health Iftikhar Shahlwani, DG Sindh Investment Board Riazuddin Qureshi and other officers and members of the PPP Policy Board attended the meeting.

For more information, contact:
Mr. Allah Bachayo Memon
Press Secretary
Chief Minister House
Tel: +92-21-99202019
Cell: +92-300-3524057 (Ext: 336)

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