Murad proposes subsidised electricity for factories

KARACHI: Sindh Chief Minister Syed Murad Ali Shah has proposed subsidised electricity for factories to add shifts to boost production and reduce federal government’s burden of paying for unused power.

Officials said on Wednesday the CM has said that although the federal government currently generates approximately 40,000MW of electricity, surpassing the demand for 30,000MW, the high cost of electricity poses challenges to factories and commercial entities.

Consequently, many industrial units have been forced to reduce their production by scaling back their shifts to cope with their power bills, resulting in a dual loss of production and employment.

To address this issue, Shah proposed the idea of offering subsidised electricity to factories that opt to operate additional shifts. He said that this approach would not only stimulate production but also create more employment opportunities for both skilled and unskilled workers. Moreover, by leveraging the surplus electricity, the financial burden on the federal government, currently incurred from paying independent power producers (IPPs) for unused power, could be alleviated. Additionally, increased production could lead to enhanced exports, thus boosting foreign exchange earnings, he said while interacting with a 17-member delegation of the Lahore Press Club led by its President Arshad Ansari.

The meeting was attended by Sindh Senior Minister for Information Sharjeel Memon, Secretary to CM Raheem Shaikh, Secretary Information Nadeem Memon and others.

The CM said that the agreements with the IPPS were made for 20 to 25 years, which also needed to be dealt with professionally and carefully.

Thar coal-fired power project: To a question, he said that 3,000MW of electricity was being produced in Thar (coal-based power) but every unit was transmitted to the national grid to Faisalabad. “I want to tell you that the electricity being produced in Thar is not utilised by Sindh but is used nationally,” he disclosed.

He said that the development of Thar for coal mining and power plants cost over $2 billion to the Sindh government in the development of infrastructure, construction of an airport to transport investors there and Sujawal Bridge for transportation of power plants machinery by road. “But, from this investment of Thar coal and power plants the entire nation reaps the harvest,” he said.

To another query, Shah said the project launched by Dr Samar Mubarak Mand in Thar was the federal government’s initiative, but it could not take off. “Now, the provincial government is using its resources to protect the assets abandoned by the project there,” he said.

The chief minister predicted that Thar would emerge as a bigger city in the country than Karachi in the next 40 years because it would be the hub of cheap production of electricity.

Replying to a question, he said his government established the Transmission and Dispatch Company in 2014 to dispatch 100MW of electricity from Nooriabad to Karachi. “Now, we have established the Sindh Electric Power Regulatory Authority (SEPRA) to decide the tariff of the power projects we would install in the province to promote the establishment of small industrial units in far-flung areas of the province.”

Shah lauded the small industries model of Punjab and said the small industrial states they have established in every big and small city have generated local economic activities.

“We are also working to establish small industrial estates in every big and small city and would provide them with affordable electricity to improve the local economy,” he said.

In response to a question, the CM stated that Sindh has fertile land and natural waterways. The Sukkur Barrage was planned in 1968 and subsequently built, along with other barrages, which led to the creation of a canal system by blocking the natural waterways. This, in turn, caused hill torrents to flood populated areas when they couldn’t flow naturally into the rivers.

The CM said that on the instruction of PPP chief Bilawal Bhutto Zardari, the provincial government was constructing 2.1 million houses for the people who lost their homes in the floods of 2022.

He said that his government has given Rs50 billion for the 2.1 million houses and the federal government of Shehbaz Sharif has also vowed to match the amount and this year they have allocated Rs20 billion.

Shah emphasized his opposition to adopting medical insurance, citing concerns that insurance companies and private hospitals would take away a large portion of the funds as profit. Instead, he aims to channel these funds into strengthening Sindh government hospitals to provide free, high-quality treatment to the people.

The visiting Lahore Press Club delegation commended the Sindh government’s development efforts in Thar, specifically acknowledging the advancements in Thar coal power production, coal mining, RO plants, Mithi Hospital, and various health facilities such as JPMC, NICVD, NICH, Gambat, and chest pain units.