PESHAWAR, Dec 15: The Water and Power Development Authority (Wapda) has indicated that it might adjust NWFP’s Rs6 billion net hydel profit share for the 2002-03 financial year against the multi-billion rupees arrears it (Wapda) has to recover from the electricity consumers of the Federally Administered Tribal Areas (Fata) and the provincial government’s departments.

An indication to this effect has been made in a letter to the federal authorities concerned, according to an official source in Islamabad.

“Wapda has informed the federal government that NWFP’s net profit share for the current financial year may be adjusted against the over Rs19bn arrears Fata’s electricity consumers and the provincial public sector entities jointly owe to pay to the authority,” said the sources.

The intended move reflects a major shift in Wapda’s earlier stand viz-a-viz payment of net hydel profit share to the NWFP during the current financial year.

Earlier, in a letter to the provincial government and a separate message faxed to Dawn offices (in response to a story regarding the issue) the authority had taken the stand that it would start disbursing funds against NWFP’s net hydel profit share for the 2002-03 financial only after it started receiving dues payable by the public sector entities and Fata’s consumers.

The authority had then laid claim to Rs27.5bn arrears receivable from the public sector entities and Fata consumers till Aug 31, 2002. The amount included Rs18.3bn arrears payable by Fata consumers and the provincial government departments.

Now, said the sources, in a recent letter to the federal government’s authorities concerned Wapda has taken more stiff stand over the issue saying that it might adjust NWFP’s net hydel profit share for the 2002-03 financial year against the over Rs19bn arrears recoverable from Fata’s consumers and the provincial public sector entities.

Official quarters here believe that ever since the last military-backed civilian government in the NWFP lodged a Rs298bn arrears’ claim against Wapda — payable since 1973-74 — the authority has been posing ‘threatening posture’ towards the provincial government.

“Earlier, they linked the payment with the recovery of their arrears from Fata consumers and public sector entities, now they are talking about adjusting the whole amount,” said the sources.

According to them, though five months of the current financial year had passed, the province had not been released funds against its Rs6bn capped net hydel profit share amount, leaving the provincial kitty in dire straight.

The Rs6bn capped share amount — which the provincial government anticipated to receive in line with the past several years — makes over 15 per cent of the Rs38bn total annual receipts the province is expected to raise during the 2002-03 financial year.

“With Wapda keeping a moratorium on the net hydel profit releases to the NWFP, the new provincial government headed by Muttahida Majlis-i-Amal, is all set to start feeling the heat due to impending financial crisis,” said official sources.