Sindh cabinet okays Rs29bn for payment of govt power bills

The caretaker Sindh cabinet in its meeting on Tuesday approved several financial allocations for development projects, including Rs29.379 billion for the payment of government electricity bills, Rs768.6 million for the operation of 50 electric buses on the city roads, and a subsidy of Rs579.756 million for intra-district people's buses.

Also, the cabinet approved Rs1.1 billion for the construction of a link road interchange, Rs33.956 million for the Kirthar National Park boundary demarcation and the fixing of boundary pillars, Rs1,424.720 million for the reconstruction of three District West schools, and Rs115 million for the restoration of the Hindu Gymkhana.

The meeting was held under the chairmanship of Caretaker Chief Minister Justice (retired) Maqbool Baqar at the CM House.

Chief Secretary Dr Fakhre Alam told the cabinet that an amount of Rs300 million (Rs10 million for each of the 30 deputy commissioners in Sindh), may be provided to all the returning officers/DCs for election expenditures. In case of any shortfall, further funds may also be provided separately, on a case-to-case basis. The cabinet approved the request for allocating Rs300 million for conducting general polls in Sindh It also okayed Rs168 million to be given to the DCs to clear the liabilities of the local government elections.

Hesco, Sepco, KE dues

The cabinet was told that a central payment process against all the Sindh government electricity connections throughout the province started in 2019. A lump sum budget was being fixed for payments every year. However, due to continuous increases in electricity prices and increases in Sindh government connections, the allocated budget of Rs41.5 billion is insufficient. The Energy Department said against the allocated budget of Rs41.5 billion, they had paid Rs35.736 billion to Hesco, Sepco and KE till September 2023, and now they are left with only Rs5.764 billion, which was hardly enough for one and half months of electricity charges.

The cabinet was told that the current monthly electricity charges on average come to Rs5,300 million and for the next eight months of the financial year, 2023-24, an amount of Rs42,400 million would be required up to June 2024.

The cabinet after deliberation approved an amount of Rs29.376 billion so that power distribution companies could clear power bills of the government up to April 2024.

Electric buses

The provincial transport department has initiated an electric bus service, being operated by Telephone Industries of Pakistan (TIP) under a Rent to Own Model.

Currently, 40 of the 50 buses have been put into operation on three routes in Karachi, with 10 buses on standby. TIP has requested the government to formalise contractual commitments with them for the operational electric buses and an investment proposal. The project includes the supply and operation of electric buses, the development of a Green Energy Facility, and the development of assembly kit plants for EVs in Sindh.

The TIP has proposed a ‘Rent to Own Financial Model’ for the supply, operation, and maintenance of electric buses, along with EV (electric vehicle) charging, depot infrastructure, and alternative energy production. Under this model, TIP will invest 100 per cent of the funds required to supply and operate electric buses and charge the passengers ticket prices. The Sindh government will have to provide a monthly lease payment as agreed between the parties on a per-bus basis to TIP for the lease, operations, and maintenance of public transport for eight years.

The monthly payment for nine-metre electric buses is $3,350, and for 12-metre-long, it is $4,500. The ownership of the buses would be transferred to the government after eight years of operations. The cabinet approved Rs.768.6 million per annum for 50 electric buses for eight years, inclusive of O&M and lease payments. Additionally, the cabinet approved Rs200 million to engage reputed consultants for technical, financial, and legal evaluation of the TIP electric buses' proposal with budgetary allocations up to Rs200 million.

The transport department proposed to increase the fare of BRT Green Line (from Rs15 to Rs30 and Rs55 to Rs70) and Intra-District Peoples Bus Service. The interim CM turned down the proposals. The cabinet was told that the BRT Green Line would be handed over to the government in 2024.

Subsidy for bus service

The cabinet was told that under Peoples Bus Service, 204 buses in Karachi (36 in Hyderabad and Larkana) were plying on 13 routes, including two routes of pink buses for women.

The transport department proposed an extension of the ongoing subsidy for another six months, from January to June 2024, and the addition of 30 new buses would increase the ridership of 12,000 more passengers per day which would transform into an additional subsidy of Rs86.4 million; therefore, funds amounting to Rs579.756 million may be provided as subsidy from the outside the budget. The cabinet approved the subsidy.

Hindu Gymkhana

The Hindu Gymkhana was established in 1925 on a plot of 47,000 square yards. Before Independence, it was a club for people from upper Hindu classes. This historical building is widely considered an architectural gem in Karachi.

Its building has suffered terribly, and its exterior has been eaten away by pollution and dust. Due to leakage from the top of the roof, rising dampness, salinity and weathering, the condition of the building is deteriorating. The building has grown feeble, and its retrofitting does not go along with the building's architecture. The cabinet was told that on the directives of the caretaker chief minister, the cost analysis of the project has been reviewed and reduced the required amount to Rs109.680 million from the earlier proposed amount of Rs.115.716 million. The cabinet approved Rs109.680 million for the project.

Kirthar National Park

The cabinet was told that the Kirthar National Park was the first-ever national park of Pakistan declared in 1974. The Services & General Administration Department constituted a committee. The task of the committee is to carry out a full-scale Cadastral Survey of the park and Protected Complex. It would also recommend permanent survey marks encircling the bounds of the Protected Complex, Cadastral Mapping and recommend its incorporation in the Revenue Deh Maps within sixty days. The cabinet approved the funds for allocation equal to Rs260,81,770 to complete the task within 75 days, initiating from the date of the release of funds.