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Monday, March 18, 2013
Govt acknowledges KP demands on hydropower profitStaff Report
PESHAWAR: The federal government has “acknowledged” the demands of Khyber Pakhtunkhwa government regarding net hydropower profit (NHP) issues, a communiqué issued by the Chief Minister’s House said on Sunday.
It added that a meeting of the 8th National Finance Commission (NFC) was held in Islamabad with former federal minister for finance in the chair to discuss the issue raised by the Khyber Pakhtunkhwa government.
“According to the minutes of the meeting issued by the Finance Division (in) Islamabad, for uncapping the NHP, WAPDA and Ministry of Water and Power have been directed to immediately approach the NEPRA through a tariff petition to include the NHP @ 1.10 per KWH together with annual indexation @5 percent payable to the government of Khyber Pakhtunkhwa,” the communiqué read.
It was decided that the change in tariff might take effect from next fiscal year, the report said.
“The meeting has decided that for payment of outstanding arrears of Rs101.5 billion, the federal government shall set aside and pay to the province a reasonable payment upfront in the next fiscal year.
“While for remaining amount, either a viable installation plan may be decided by the parties or other options may be made if so mutually agreed.”
The communiqué termed the development a “great achievement of the provincial government that its stance on the issue has been acknowledged by the federal government in the form of record note which will provide sound basis for the provincial government to achieve its objective.”
Courtesy www.dailytimes.com.pk