ISLAMABAD: The Economic Coordination Committee of the Cabinet
Thursday approved Ramadan Relief Package envisaging subsidy up to Rs2
billion to ensure uninterrupted availability of essential food items to
people during the holy month.
Food items including flour, ghee,
oil, daal channa would be provided at subsidized rates while white
channa, basen and dates would be available at reduced prices at the
outlets of Utility Stores Corporation throughout the country. The ECC
meeting was chaired by Federal Minister for Water and Power, Syed
Naveed Qamar.
ECC also approved summaries related to Furnace
Oil Blending in Pakistan, Uniform Gas Load Management Policy,
Re-lending of KFW Loan for Keyal Khawar Hydro-Power Project in
accordance with new re-lending policy of the Government, Tax exemption
for WAPDA for Second Sukuk Company Limited, 1100 MW Kohala Hydro Power
project and additional security issues of Uch Power Private Limited and
extending NOC for awarding of contract to KRL for the development of
Uch-II Development Project.
On the summary moved by the
Ministry of Petroleum and Natural Resources the ECC approved Furnace
Oil Blending in Pakistan to acquire blending technology for
socio-economic benefits, additional employment opportunities and
increased investment in oil sector. It may be added here that this is
for the first time, the blending of furnace oil technology will be
introduced in country.
Pakistan has already sufficient
infrastructure to blend high viscous. The ECC directed the Ministry of
Petroleum and Natural Resources to ensure proper monitoring system at
the time of blending and SOPs be drawn.
The monitoring system
would function under the supervision of OGRA and Hydro Carbon
Development Institute of Pakistan and the IPPs would be its consumers.
After
much deliberations and discussions on the Uniform Natural Gas Load
Management Policy proposed by the Ministry of Petroleum and Natural
Resources to the ECC, it was decided that gas supply to two IPPs would
continue for the next five months and the other two IPPs would be asked
to resort to other fuels on which the price differential would be given
to them. The approved summary on natural gas load management policy has
proposed curtailment of CNG supply to CNG stations for three and two
days for the Provinces of Punjab and Sindh respectively.
The
gas saved by the proposed curtailment would be used for power
generation in Sindh and to facilitate fertilizer, industrial and power
sector in Punjab on equitable basis so that consistent supply of power
is ensured. Re-lending of Keyal Khawar Hydro Power Project was also
been approved by the ECC. At the request of Ministry of Petroleum and
Natural Resources, the committee deferred the proposal for the revision
in gas sale prices for the next two or three days so that the matter
may be discussed at the Cabinet level or with the Prime Minister. The
committee, however, accepted the economic rationale for the revision of
gas sale prices and for the removal of distortion in the prices. Tax
exemption for WAPDA Sukuk Company has already been approved by the
Ministry of Finance which has granted exemption for the payment of
income tax.
The ECC also approved modification of tariffs by
NEPRA allowing operation of gas based IPPs on back up fuel (HSD) with
full cost recovery, whatever period gas is not available to them. The
ECC accorded no objection certificatge to the Ministry of Petroleum and
Natural Resources for award of UCH-II development project to be
undertaken by the (KRL) Khan’s Research Laboratories. The summary for
this project was earlier submitted to the Prime Minister who desired
that the same may be discussed at the ECC for decision. KRL has already
shown its acceptance to undertake this project by lowest bidding and
fast track its completion within the stipulated time. Additional
security issues for Uch Power Project was also approved by the ECC.
This was the first meeting of ECC after the approval of federal budget
budget 2011-12 by the Parliament, which discussed at length more than
twelve agenda items, and was attended by the Federal Ministers and
Secretaries of the concerned ministries. Online
