PESHAWAR, Aug 26: The NWFP government has laid claim to over Rs298 billion against Water and Power Development Authority on account of net hydel profit arrears payable since 1973-74 financial year, according to official sources.

In a letter sent to the Wapda chairman and federal government authorities concerned, the provincial government has made a fresh claim against Wapda reserving the right of NWFP under article 161 (2) of the Constitution and the presidential order No-3 of 1991 titled “distribution of electricity profit from the hydroelectric stations to provinces”.

Besides, AGN Kazi committee’s formula determined in 1987 to calculate the net profit in addition to the Supreme Court’s judgment passed in a 1997 case, pertaining to Gadoon Amazai industrial estate, has also been made as the base line for laying claim to over Rs298 billion arrears against Wapda, official sources told Dawn.

Confirming that a fresh claim has been made, a senior Wapda official said the provincial government, in actual, has laid claim to around Rs330 billion inclusive of over Rs177 billion as the total principal amount payable as net profit since 1973-74.

The remaining amount, over Rs152 billion, has been calculated on account of interest payable over and above the principal amount since 1973-74 financial year. Sources said under the renewed effort the provincial government has asked for resettlement of the long standing issue to  help it overcome financial constraints and more over to make Wapda to honour the due constitutional right of the province.

The provincial government has taken the stand that instead of making payments of the capped share amount of Rs six billion to the province every year, the Wapda should honour the NWFP’s right enshrined under article 161 (2) of the Constitution and decisions, taken from time to time by various decision making forums of the state.

The province received Rs30 billion during the last five years against a projected amount of over Rs58.7 billion payable to it during the same period in accordance with the 1997 National Finance Commission, which used the AGN Kazi committee’s formula as basis to determine the annual net hydel profit share of the NWFP.

The provincial government, said the sources, had taken the stand the province’s share on account of net profit should be calculated by taking Wapda’s gross revenue as the base line. Presently, Wapda calculates NWFP’s net profit share without calculating surcharge and additional surcharge as parts of the gross revenue.

In this respect, the Wapda sources said, the provincial government had cited the supreme court’s judgment pertaining to a 1997 case of an industrial unit of Gadoon Amazai industrial estate thereunder judges of the apex court had declared the surcharge and additional surcharge as parts of Wapda’s tariff.

“During the course of proceedings of the 1997 case, the Wapda,” a former provincial finance minister on request of anonymity, said “had taken the stand before the court that though the surcharge and additional surcharge are shown as separate items in electricity bills to consumers, in actual these are part of the electricity tariff”.

The province, they added, had laid fresh claim on the basis of recommendations put forth by a task force the provincial government had constituted to look into the non-payment of net hydel profit and determine the claim of the province.

In its letter, the provincial government said in accordance with the 1991 decision of the Council of Common Interest (CCI) the provincial government has been receiving special grants every year, from the Centre to partly overcome its budgetary deficit.

The amount released to the province, as per CCI’s decision, was subject to adjustment once Wapda started paying net profit share to the province. Hence, the provincial government had taken the stand that as a total amount of Rs30 billion, received from Centre as special grant by the province between 1973-74 to 1991-92, should be deducted from the total amount of Rs330 billion payable to it inclusive of Rs177 billion principal amount and remaining amount of Rs152 billion payable as interest over and above the Rs177 billion principal amount.