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  • Oct 18th, 2014
  • Comments Off on Coal-fired power plants: Minister accuses oil lobby of hatching conspiracy
Minister for Water and Power Khawaja Asif said Friday that oil lobby is behind the conspiracy against coal-fired power plants and claimed that National Electric Power Regulatory Authority (Nepra) has rejected a petition of PTI leader Asad Umar. However, Vice-Chairman Nepra Habibullah Khilji told Business Recorder that the regulator has not taken any decision on the petition filed by the PTI leader.

"Nepra conducted a public hearing on the petition of Asad Umar a few days ago. We will take a decision after going through documents and on the basis of arguments given during the public hearing. We have not given any decision on this issue. I cannot comment on Khawaja Asif's claim in the press conference," Khilji added.

Addressing a press conference, the Minister for Water and Power claimed that Nepra has rejected Pakistan Tehreek-e-Insaf's request related to the tariff as the application stated inaccurate statistics. He expressed the hope that agreements will be signed next month with China for projects of 10,400 MW electricity generation in Pakistan, adding that the Chinese companies were making $ 14 billion direct foreign investment in country's power sector.

He said an official delegation will visit China next week to sign agreements with Chinese companies. Projects to be executed with Chinese assistance will include hydel, wind and coal power plants which will generate cheap electricity to overcome energy shortage in the country. He said it will be a Foreign Direct Investment (FDI) in the energy sector as China will provide loans to the executing companies of these projects.

"A lobby benefiting from oil resources is behind the conspiracy whereas another lobby tried putting Pakistan-China friendship at stake by orchestrating a situation that hampered Chinese President's visit to Pakistan," he added. Replying to a question regarding the genuineness of companies, the Minister said details of companies would be presented before the media once the contracts are inked with China.

Khawaja Asif who has failed to improve the performance of the power sector claimed that a lobby created hurdles in the government efforts to shift power generation projects from furnace oil to coal for generation of cheap electricity. Insiders claim that investors' response to advertisements given by Private Power and Infrastructure Board (PPIB) for setting up of coal-fired power plants has been discouraging.

Khawaja Asif maintained that protesting parties caused a loss of billions of dollars to the national economy for political motives. He said conditions were created in which the visit of the Chinese President to Pakistan was postponed. He said different electricity projects are at various stages of completion which would help overcome power shortage in the country. The Water and Power Minister claimed that there has been no increase in tariff since October 2013.

The Minister's claim is contradictory to the Special Assistant to Prime Minister, Dr Musadak Malik's data, which he revealed to the cabinet last month, and which acknowledged that tariff rose by 33 per cent during the last one year. In that Cabinet meeting, Khawaja Asif reportedly hurled accusations against Chief Minister Punjab Mian Shahbaz Sharif and his scion Hamza Shahbaz for interfering in his Ministry's affairs. Khawaja Asif said three private audit firms have been hired to audit inflated electricity bills.

To a question, the Minister said the government provides 100 percent subsidy on electricity produced from oil which enables the government to provide it at Rs 9per unit instead of at its generation cost of Rs 18 per unit. He added that power plants in India are mostly manufactured locally while Pakistan has to import them. The government, he clarified, will not procure loans for establishing coal-fired power plants but private sector companies would. Prime Minister's Special Assistant Dr Musadak Malik in one of his tweets said "coal tariff controversial, nuclear stayed, gas not available, hydro needs time - God bless Pakistan".

Copyright Business Recorder, 2014


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