Sindh opposes centre’s plan of at-source deductions from provincial revenue

KARACHI: Sindh has rejected a federal government proposal for at-source deductions from its resource pool in the upcoming national electricity policy, and termed it unconstitutional.

The provincial government said all the revenues received by it in pursuance of Article 160 of the constitution forms part of the provincial consolidated fund, which is utilised according to the provincial assembly’s discretion.

“Any attempt to make at-source deductions from the revenue of a provincial government under any pretext would be unconstitutional,” Imtiaz Shaikh, provincial minister for energy said in a letter to the Federal Minister for Energy Omar Ayub.

Sindh government irked over the federal government’s ignorance to its advices related to energy security and not including them in the final draft of the new electricity policy. The provincial minister for energy said the comments and suggestions of the provincial government were not made part of the proposed National Electricity Policy 2021 presented to the Economic Coordination Committee (ECC) of the cabinet last month.

“This defeats the very purpose of drafting a policy called national electricity policy when suggestions of a province with the potential to ensure energy security of the country are ignored,” Shaikh said.

The provincial minister said the draft has not been shared with the province and it ‘informally obtained’ a copy, according to the letter available with The News.

He said the Council of Common Interest is the competent forum to consider and approve the policy. “It’s therefore in the interest of federal and provincial governments to finalise a consensus national electricity policy in national interest.” Last month, the ECC directed the officials to take all provinces on board during consultative process on the national electricity policy when the power division placed it for ratification. ECC referred the policy to cabinet committee on energy for consideration with the advice that the policy might be referred back to ECC with recommendations if the subject falls in the domain of the ECC.

Sindh government wants a meeting of provincial energy ministers before the policy is forwarded to any other fora.

The province wants Islamabad to recognise Thar coal as a primary fuel for base load power generation for meeting the electricity demands of the country.

Thar coal is abundant in quantity and cheaper than indigenous natural gas, said the minister. Thar coal has the capacity and potential to ensure energy security of the country, Shaikh said referring to a decision of the federal government in 2010 to declare Thar coalfield as special economic zone and projects of Thar were also declared as projects of national security.

The province further called for recognition of the role of provincial grid company as a partner company in the expansion of grid and transmission network.

“The National Transmission and Despatch Company and Sindh Transmission and Despatch Company may work together for the expansion of grid and transmission lines in the province especially for evacuation of power from wind corridor, solar parks and / or from Thar coal field,” Shaikh said.

The federal government was asked to recognise priority of agriculture and drinking water requirements of lower riparian provinces while considering any reservoir-based hydropower generation project in the country.