Rosy Thar energy outlook

Published June 14, 2014
Sindh Chief Minister Syed Qaim Ali Shah addresses members of Sindh Assembly. — Photo by PPI
Sindh Chief Minister Syed Qaim Ali Shah addresses members of Sindh Assembly. — Photo by PPI

KARACHI: As Sindh grapples with a never ending power crisis, the seemingly oblivious provincial chief minister Qaim Ali Shah spelled out a rosy outlook, with Thar being the centrepiece for all things energy.

The government aims “to provide reliable, affordable and sustainable energy to the residents of Sindh and become net exporter of electricity by the year 2018,” said Shah in his budget speech for 2014-15.

Ironically, these words came only a little while after a power breakdown plunged the Sindh Assembly hall into darkness.

The chief minister said the government invested over Rs30 billion in various projects and studies related to Tharparkar in the outgoing fiscal year.

Announcing that overburden removal at Thar Coal Block-II has begun, he said, “for next fiscal year, over Rs20bn has been earmarked for the energy sector and Rs7bn for power development initiatives.”

Sindh Power Policy 2014 has been introduced along with a number of power generation projects of renewable energy, coal, and oil and gas sectors. The Sindh Engro Coal Mining Company is aiming to make Tharparkar a powerhouse for the country, he added.

Qaim informed the house that various Thar power projects have been included by the Chinese government in Pakistan-China Economic Corridor and this will ensure expeditious financing for mining and power projects.

Under the public-private partnership, the Sindh government envisages a gas-fired 100mw project at Nooriabad, run of the river project at Rohri Canal, Khairpur Waste to Energy projects of 20mw and 5 projects of solar power of 20mw each.

A pilot project for solarisation of 350 off-grid schools in Nangarparkar and 100 off-grid houses in Sanghar district have already been started and will be done by September 2014.

The chief minister said that Nepra has increased the cap for wind power tariff to 1,250 MW, adding, “Many companies are actively working and wind corridor will soon provide increased generation to the national grid.”

He announced that under the Petroleum Policy 2012, the Sindh Energy Holding Company Limited has been incorporated with a seed capital of Rs250m and acquired 2.5pc working interest with OGDCL and PPL in six concession areas. An allocation of Rs750m has been earmarked in this regard in 2014-15.

The Sindh Oil and Gas Company Limited have been set up while Research and Development for Coal Bed Methane in collaboration with universities and energy and power companies has also been set up.

He informed that the Sindh government has incorporated Sindh Wind Power Development Company and set up the Alternative Energy Development Fund.

Along with all the power projects, the Sindh government announced Rs500 million ‘special package’ for Thar Development Plan and another Rs400 million Tharparkar Package for the uplift of one of the most marginalised areas in the country.

Power bills payments: Rs26bn has been allocated for payment of electricity bills in the budget, a substantial increase of Rs16.5bn from last year’s Rs9.5bn.

The allocation for all government entities for payment of electricity dues has been increased by 35pc and grants of Rs5.0bn and Rs800m have been kept for the KWSB and WASA Hyderabad so that these utilities can pay their power dues.

Another Rs900m has been earmarked for Public Health and Engineering Department.

Meanwhile, the Sindh chief minister urged the power distribution companies to correct bills and get only legitimate payments.

Published in Dawn, June 14th, 2014

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