LAHORE, June 18: Punjab is finalising a programme to establish hydropower stations over its canals and 48 points have already been identified for the purpose.

This was stated by Chief Minister Pervaiz Elahi while talking to a delegation, which was led by Hungarian Ambassador Bala Fazekas here on Sunday.

P&D chairman Suleman Ghani, a leading Hungarian company’s director-general Istvan Otomosy, Heavy Mechanical Complex (HMC) managing-director Syed Ansar and Hungary’s honorary consul general Mehtab Mohiuddin were also present on the occasion.

The chief minister said the government would encourage private sector and foreign investors for the establishment of these projects. Relations between Pakistan and Hungary were based on strong footings and there were ample chances of cooperation between them in hydel power generation projects and other sectors.

He said the government had adopted a comprehensive policy for management of water resources and for taking full advantage of them. Foreign investors were taking keen interest in establishment of power stations over provincial canals.

The chief minister said a Rs300 million hydropower project had been started in Mandi Bahauddin as a pilot project. The station would generate 3.7 megawatt electricity and in case of its successful operation many such power stations would be established at other places in the province.

He termed the agreement between Hungary’s Ganz company and HMC regarding manufacturing of turbines as a welcome step, saying this would facilitate establishment of power plants over the provincial canals. Transfer of world standard technology would prove beneficial for the country’s economy and power production here.

Mr Fazekas said the agreement would leave a positive impact on trade and commerce relations of both the countries. The Hungarian company had an excellent technical capability to produce turbines whose production would help the provincial government easily set up its power stations.