Murad hosts ministers, industrialists to discuss transition from captive power to grid

KARACHI: Sindh Chief Minister Syed Murad Ali Shah hosted a meeting of federal ministers and industrialists on Sunday to discuss issues related to the phasing out of industries’ captive power plants and their transition to grid-supplied electricity -- a mandatory shift under a cabinet decision.

However, the meeting decided that all proposals and reservations expressed by the concerned industrialists in this regard would be submitted to the prime minister for a final decision.

The meeting decided that the prime minister would also be requested to constitute a committee to determine the transitional period on imposition of levies on the industries.

The Sindh CM categorically stated that the gas withdrawn from the captive power plants, after connecting industrial units to the national grid, must remain within the province.

The meeting served as a platform for brainstorming sessions between industrialists and federal government representatives to establish a timeline for the transition of the industries from the captive power plants to the DISCOs.

The meeting, held at CM House, was attended by Sindh Chief Minister Syed Murad Ali Shah, federal ministers for Finance Muhammad Aurangzeb, Petroleum Ali Pervaiz Malik, Energy Minister Awais Leghari, PM Special Assistant Rana Sanaullah, MNAs Syed Naveed Qamar, Asad Alam, Mirza Ikhtiar Baig, Chief Secretary Asif Hyder Shah, federal and provincial secretaries of the concerned ministries, MD SSGC, K-Electric CEO Moonis Alvi, and leading industrialists of the city -- Zubair Motiwala, Shabir Diwan, Jawed Balwani, and others.

The transition from captive power plants to the national grid or DISCOs (power distribution companies) must be facilitated, for which the federal government must reassure the industrialists, the CM said, adding that a mutually agreed-upon timeline should be adopted in this regard.

The meeting focused on in-depth discussions regarding the proposed increase in the gas tariff for captive power plants. “There are approximately 660 captive power plants in Sindh,” said CM said. “Industrialists have raised concerns about the proposed tariff hike. We have dedicated this Sunday to listening to industrialists,” he added.

Industrialists voiced objections, stating that additional charges have been imposed on industries under the “De-Grid (Captive Power Plants) Levy Ordinance 2025.” Gas companies are already overcharging. Any further taxes on captive power plants could become unbearable for industries.

It is not feasible for industries to shut down captive power plants and rely solely on electricity from the federal grid, as the grid supply is often unstable, the industrialists said. At this, Federal Finance Minister Muhammad Aurangzeb, while briefing the participants, said, “We are here today at the invitation of the Sindh government to listen to the concerns of industrialists. The country’s economy is growing, and this progress includes the efforts of all stakeholders. The prime minister has directed us to introduce policies that ensure industrial growth.”

Petroleum Minister Ali Pervaiz Malik highlighted that President Asif Ali Zardari and PPP Chairman Bilawal Bhutto Zardari have also emphasised the importance of resolving industrialists’ issues in Sindh. He acknowledged the Sindh CM’s efforts and commitment during a previous zoom meeting with industrialists.

Energy Minister Awais Leghari informed the meeting that a 30 per cent reduction in industrial tariff has already been implemented. Distribution companies (Discos) are improving their operations. A feasibility plan for 7,000 MW of power generation is ready. Leghari said that industrialists will eventually need to shift from captive power generation to Discos/distribution networks. So far, 583 captive power plants have already transitioned to Discos grid.

The chief minister reiterated the ultimate goal of shifting all captive power plants to the national grid but stressed that this transition should not overburden consumers. “If gas is cut off from captive power plants, it should remain within Sindh and not be diverted elsewhere,” he asserted.

Special Assistant to the Prime Minister Rana Sanaullah described the meeting as “highly productive” and assured that all suggestions made by the chief minister and industrialists would be conveyed to Prime Minister Shehbaz Sharif. A committee would be formed to review whether a tax should be imposed during the transition period from captive power to the national grid. The final decision on taxation will be made by Prime Minister Shehbaz Sharif.