Energy budget sees massive cut in powerless times

Allocation goes from Rs16b to Rs8b; most of outlay to go to new projects

LAHORE: The Punjab government’s Department of Energy has seen a massive cut in its budget for Fiscal Year 2017-18 as the total allocation was just Rs8.75 billion. The figure was a little more than half of 2016-17’s outlay of Rs16 billion, amounting to a reduction of 46%.

The budget allocation has also seen a gradual decrease since FY 2013-14 when a budget of Rs20 billion was announced to tackle the province’s ever-growing energy needs.

According to the allocation plans, approximately Rs2.9 billion will go towards sustaining seven ongoing schemes. Around 58% of the budget, or 4.964 billion, has been set aside for 16 new schemes.



The department defined their objectives as availability of affordable energy, helping the private sector in power generation, sale, purchase and distribution, a sustainable energy mix by introducing appropriate technologies, using indigenous resources for power production and tapping hydropower potential.

The 16 new schemes include an allocation of Rs500 million for the construction of an energy resource centre in Lahore.

Meanwhile, Rs1 billion will be allotted for Khadim-e-Punjab Ujala Programme in the central region of the province.

At the same time, Rs600 million has been set aside for the establishment of a 15-20 megawatt biomass thermal power plant near Chak Jhumra in Faisalabad. Another Rs600 million been allotted for the establishment of mini hydropower sites.

Meanwhile, Rs20 million will go towards resource mapping of hydropower potential in the Potohar region. For the establishment of a 1200 MW re-liquified gasified natural gas (RLNG)-based power plant in Rahim Yar khan, a budget of Rs500 million rupees was set aside.



Other schemes include an allocation of Rs1.3 billion for the Khadim-e-Punjab Ujala program in the southern region, while Rs600 million rupees were set aside for a similar program in the northern part of the province.

At the same time, Rs73 million are on the cards to upgrade the Centre for Energy Research and Development at the University of Engineering and Technology.

According to the details provided in the budget documents, Punjab’s power consumption is 68% with a demand growth of 6-8 % per annum. Presently, there is a demand/supply gap of 5,000 megawatts and the over 90 million population was worse-hit by load-shedding.

The department recognises the need to create different institutions and undertake development projects in the public and private sector for energy generation and conservation.

The document also mentioned that the province was coping with severe energy shortfalls which adversely affected its annual targets and GDP growth.

Published in The Express Tribune, June 11^th, 2017.