Home »Top Stories » RPPs will not affect power tariff: BoI chief

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  • Jan 21st, 2010
  • Comments Off on RPPs will not affect power tariff: BoI chief
The rental power plants (RPPs) would not affect the electricity tariff in general as it is a short-term initiative to meet power shortage, Board of Investment (BoI) Chairman Saleem H Mandviwalla said on Wednesday. He was speaking at a press conference at Lotte Pakistan PTA Ltd here. He dispelled the impression that RPP would increase electricity tariff by 43 percent, and said that RPPs would be established for a short term of five years to overcome energy crisis.

He said that the demand of electricity stood at 20000MW countrywide while RPPs would cohesively contribute some 1000MW to 1200MW. "So how it would create negative impact on the whole electricity tariff?" He said that the Lotte group is keen to invest in different businesses including confectionery, hotel & tourism, beverages, chemical, etc in Pakistan. He said that the Korean delegation including six executive officers of Lotte group has started deliberations in this regard.

He said the delegation, led by Dong-Bin Shin, President of Lotte group, is scheduled to meet Prime Minister Yousuf Raza Gilani on January 21 to discuss investment related issues. The BOI chief said the coal fields at Thar, Lakhra and Sonda having 185 billion tons of coal reserves and the announcement regarding Australian investments in Thar coal field would soon be aired.

He said that Pakistan offers unparalleled investment potential including high "return on investment" in oil and gas sector, power generation, textiles, agriculture, mines and mineral and infrastructure development, dairy farming, mass transit, etc.

Meanwhile, Asif Saad, CEO of Lotte, along with Korean delegation, said that the company is going to invest $40 million to establish 40MW power plant to meet industrial requirements. He said that out of total $45 million investment, $40 million would be utilised in establishing power plant and remaining $5 million has been allocated for the expansion of PTA plant.

"Despite having 30MW electricity demand to meet its industrial needs, Lotte is setting up 40MW energy plant to facilitate power-starved Karachi Electric Supply Company (KESC) to bridge the gap between supply and demand," he added. He said that the decision regarding expansion of PTA plant was made as Lotte produced 0.5 million tons PTA against the market demand of 0.8 million tons, and added that the company is contributing its role towards sustainable economy growth by saving foreign exchange of $100 per ton in this connection.

Copyright Business Recorder, 2010


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