Priorities: Energy Dept’s budget cut by 45.3 per cent

Rs8.75b allocated for the dept compared to Rs16b last year.

LAHORE: The provincial government has announced a 45.3 per cent cut in Energy Department’s budget, allocating Rs8.75 billion for 2016-17 compared to Rs16 billion last year.

According to budget documents, the department has been allocated the lowest amount since its establishment in 2011. Rs2.9 billion has been set aside for seven new schemes.

The remaining amount will be spent on ongoing schemes.

Rs2 billion has been reserved for the Energy Development Fund to start new initiatives aimed at providing innovative power-generation solutions, and establishment of labs for ensuring energy efficiency and conservation.

Rs300 million will be spent on installing solar panels at basic health units across the province.

As much as Rs250 million has been allocated for the establishment of 15-20 megawatt biomass thermal power plant near Chak Jhumra, Faisalabad. An amount of Rs250 has been set aside for the construction of an energy resource centre.

According to the documents, Rs20 million each has been allocated for feasibility study of a 4.16MW Okara Hydro Power Plant on Lower Bari Doab Canal, and for upgrade of feasibility study of a 3.58MW hydro power plant on Upper Chenab Canal.

The government has allocated Rs60 million for the second phase of the installation of ‘smart’ meters. According to the documents, the province’s consumes 68 per cent of the country’s total power consumption, with a demand growth of 6-8 percent per annum.

Currently, there is a demand-supply gap of 4,000 MW. As a result, the province faces electricity and gas load shedding affecting more than 90 million people.

Published in The Express Tribune, June 17^th, 2016.