ISLAMABAD: The Khyber Pakhtunkhwa government, as part of its industrial policy, will provide cheaper electricity to prospective investors to spur industrialisation, said the provincial minister for industries, commerce and labour on Friday.

Calls to offer incentives came at a time when more than 70 per cent industrial units in the province have shut down their businesses in the wake of war on terror.

Talking to a select group of journalists at Pakhtunkhwa House, Bakht Baidar Khan said his ministry would set up industrial zones near hydropower generation spots to provide cheaper electricity to industries. He said the ministry had already identified spots for the purpose.

The industrial policy is a paradigm shift to overcome the province’s geographically disadvantageous location in exploiting its abundant natural resources, particularly energy.

The policy revolves around two basic themes – assured hydro-based electricity to industries and private sector-led management of the industrial zones.

A new company would be set up to run the zones’ affairs, for which the government would provide seed money, he said, adding that cheap electricity would also be offered to those investing near the gas extracting spots.

Industrial zones will be set up on the pattern of Sunder industrial estates, which have helped in Punjab’s industrialisation.

Under the policy, industrialists will be offered cheap electricity near the numerous old hydropower generation spots as well as new plants. Electricity from the new project could be supplied to industries through wheeling charges by using the distribution network of the Water and Power Development Authority (Wapda).

For example, Gadoon Amazai Industrial Estate in Swabi district would be offered electricity at concessionary rates and on a priority basis from Pehur High Level-I hydropower plant. The plant, to be completed soon, will generate 18 MW of electricity.

Investors in Dargai, located in semi-tribal Malakand Agency will be offered electricity from the Malakand-III hydropower plant, established by former provincial government led by Muttahida Majlis-i-Amal.

The plant, having a capacity of 81MW, was the first ever self-financed hydropower station installed by the provincial government.

Initially an industrial zone was also planned near the power plant, but the Awami National Party-led coalition government shelved the plan and decided to sell 71MW of electricity to Wapda and the remaining 10MW to ailing industries.

Mr Baidar said that a marble city would also be established in Chitral.

Meanwhile, talking to a Canadian delegation at KP House, the minister said the province had rich natural resources but due to poverty, lack of skill, machinery and resources, neither the local population nor the world community could benefit from it.

He asked the developed nations to come forward to explore rich mineral resources of the province and the Federally Administered Tribal Areas (Fata).

The minister said these nations should contribute to transfer technology and skills to the province. This would eradicate poverty and unemployment on the one hand and militancy and terrorism on the other, he said.

The delegation formally invited the province to participate in the upcoming international exhibition to be organised in Canada in March next year in which 125 countries will showcase their mineral and natural resources.

The provincial government accepted the invitation and decided to book a stall with the help of the Canadian Chamber of Commerce.

Representatives of mineral and industries departments, both from Fata and the province as well as from KP Chamber of Commerce and Industry, were also present on the occasion.