These financial resources will be made available to Wapda in addition to its share in the PSDP for 2006-07. Sources said the commission has ensured all-out financial support to Wapda to help it revamp existing power production and distribution system, besides establishing more power plants to cater to ever-increasing energy needs in future.
Setting up a 500mw thermal power project in Punjab is part of Wapda's long-term policy. The project will cost Rs 18 billion and would be completed in June 2008.
Planning commission deputy chairman Dr Akram Shaikh met Wapda chairman Tariq Hameed in Lahore on Monday and informed him about the availability of additional financial resources.
Sources said the Wapda chairman gave a detail presentation to the planning commission deputy chairman, covering total power production capacity of Wapda and consumption in 2005-06 and future demand.
According to the presentation, Wapda's power consumption showed 11 percent increase in 2005-06 against only 6 percent in 2004-05. However, parity in power consumption and industrial growth showed discouraging trends in 2005-06.
The presentation indicated domestic and commercial use of power increased by 12 and 18 percent in 2005-06, respectively, whereas, industrial power use declined to 7 percent. A big jump of power use by domestic and commercial sectors is indicative of unproductive use of energy, as its contribution in industrial growth and subsequently in GDP is always very marginal. Sources said Wapda is studying different options to change the equation for optimal use of power for productive purposes.
Sources said Wapda is also undertaking a massive repair and maintenance programme of its existing facilities to enhance its efficiency and plug leakage. It will also install capacitors in Lahore, Gujranwala and Multan regions to enhance capacity of its system. The programme will be extended to other regions in the second phase. The first phase will cost $20 million and it will help the authority get 150mw additional power in a short span of six to nine months.
Sources said Wapda will submit detail programme to the planning commission for upgradation of its system, besides completing new thermal power plant projects on the fast track basis.