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Accord with 11 IPPs helped save $1 bn: Wapda Chief

MULTAN: The chairman, Water and Power Development Authority (Wapda), Lt. Gen Rao Zulfikar Ali Khan, on Saturday said a huge sum of $1 billion has been saved as a result of deals with 11 IPPs.

Addressing a Press conference he said parleys with the rest of the five Independent Power Projects (IPPs) are under way to sort out the tariff issue.

He said Wapda has been able to generate Rs 31 billion more revenue in 1999 as compared to the previous year. The net income was computed at Rs 10.2 billion, he added.

He said Wapda has offered a special concessional package to the industrial sector. The package has been hailed by All Pakistan Textile Mills Association (APTMA) and other organisations, he added.

He clarified that General Sales Tax (GST) is not being levied on domestic consumers and commercial users of upto 500 units. He said Wapda itself is paying GST on oil and gas which it is using for power generation.

To a question, he said use of generators is not viable for the industries. Wapda electricity is still cheaper than the one generated by private generators, he stressed.

To another query, he said the authority is unable to drastically subsidise power as it is a commercial concern and cannot survive without profitability.

He said Hubco was selling power to Wapda at 11.3 cents per unit while the latter is reselling it at an average rate of seven cents.

So, except for small domestic consumers, big domestic users and commercial consumers have to pay more to meet the gap, he clarified.

Zulfikar said Wapda is purchasing power at the rate of Rs 4.20 per unit but it is offering the same at an average Rs 3.37 per unit.

He said Wapda would like to minimise rates but until power is generated or purchased at higher tariff it will be a wishful thinking to make it inexpensive.

He said "we realise that electricity is cheaper in our neighbouring countries like India, Bhutan and Bangladesh etc, our production cost is higher than theirs".

About the power theft, he said after the induction of army it has declined. Now, the line losses and pilferage have come down from 42 percent to 32 percent.

To a question about power sale to India he said "we shall follow govt decision in this behalf". About Kalabagh Dam he said it needs a national consensus.

Replying another query, Zulfikar said load-shedding in Karachi by KESC has now been overcome. Billing is not our concern, he added. APP