October 22, 2006	Sunday	Ramazan 28, 1427

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ISLAMABAD, Oct 21: Wapda needs to recover Rs10.87 billion from seven agencies in the Federally-Administered Tribal Areas. According to a water and power ministry official, the government had been informed that Wapda had incurred a cash shortfall amounting to about Rs49.24 billion and an accounting loss of more than Rs29.13 on account of continuation of consumer tariffs, lesser availability of hydel energy, pay revisions and electrification programmes.

According to the official, the ministry of water and power had suggested the government to waive the development surcharge levy or convert liability to equity excluding the levy due on Faisalabad and Gujranwala electric utilities.

It was also suggested to consider the cash deficit as cash grant to Wapda.

The official said that the issue had been taken up by the Economic Coordination Committee of the cabinet in which it was decided that the issue should be resolved between the secretary finance and Wapda chairman after discussing it with the prime minister.

The prime minister had asked the finance ministry to give their comments and views on the summary submitted by the water and power ministry in this regard, the official said.

Meanwhile, the prime minister said that the government would give Wapda an additional amount of Rs5.1 billion to improve its distribution and power generation capability.

Chairing a meeting at the prime minister House to review the overall situation in the power sector, the premier said that the government would make all possible efforts to bridge the gap between demand and supply of electricity.

Chairman Wapda Tariq Hameed updated the prime minister about the ongoing development schemes.