Sindh to establish its own power regulatory authority

Cabinet approves SEPRA, aiming to improve energy equity and eliminating energy poverty in the province

KARACHI:

The Sindh cabinet approved the establishment of the Sindh Electric Power Regulatory Authority (SEPRA) — a body aimed at improving energy equity and eliminating energy poverty in the province.

The decision was made during a meeting of the cabinet, which was chaired by Sindh Chief Minister Syed Murad Ali Shah at CM House on Wednesday.

Murad referred to the decision as a historic step towards power generation, transmission, and distribution. The meeting was attended by provincial ministers, advisors, special assistants, Chief Secretary Sohail Rajput, Chairman P&D Hassan Naqvi, PSCM Fayaz Jatoi and other concerned officers.

During the meeting, Sindh Energy Minister Imtiaz Shaikh briefed the cabinet that the province had been blessed with an entire value chain of energy resources, including coal, solar, and wind, with cost-effective access through air, land, and sea routes.

These resources could be utilised for the generation of electricity, which could be wheeled through the transmission network of Sindh Grid Company to meet the demand of household, commercial, and industrial consumers of the province at affordable prices, he added.

Imtiaz further added that the provincial power projects, especially the renewable projects wind and solar development, had been facing constraints within the national framework in terms of non-inclusion in the Indicative Generation Capacity Expansion Plan 2021 (IGCEP 2021) and lack of further processing by the concerned entities.

In response, Murad stated that it was essential to establish a comprehensive legal, policy, and regulatory framework for the generation, transmission, distribution, and regulation of energy. This framework would help improve energy equity and eliminate energy poverty in the province.

The cabinet was told that under Section (7)(4) of the NEPRA Act 1997, the provinces had been allowed to construct power houses and grid stations and lay transmission lines for use within the province and determine the tariff for the distribution of electricity within the province.

The cabinet, after a thorough discussion, approved the establishment of the Sindh Electric Power Regulatory Authority.

Minister Transport Sharjeel Memon told the meeting that Karachi BRT Red Line Project was being implemented in collaboration with ADB and co-financer including AIIB, AFD, and GCF, at a cost of $ 503.2 million. He added that TransKarachi was an implementing agency for the project.

The BRT project corridor passes through urban areas of the city originating from Malir Halt and terminating at Tower via Malir Cantonment, Safoora, University Road, and Numaesh. The land of Aladdin Park which is nearby the Mosamiyat Depot has been identified to be used as the project’s other depot.

At the request of the Transport Department, the cabinet approved the proposal to provide 16-acre land of Aladdin Park to the Transport Department to develop it as a bus depot/staging facility.

The features of the bus depots include a bus parking facility, bus inspection area, filling station (biogas), workshop, offices, bus wash, and vacuum facility, watch towers, security, and main entry gates, a water recycling plant, and fire pump room.

The cabinet also directed the Transport Department to take over the land of the slaughterhouse to establish a biogas plant for the BRT Red Line project.

The provincial cabinet also approved Rs246.678 subsidy for the Peoples Bus Service to meet the fare difference.

On the proposal of Labour Minister Saeed Ghani, the cabinet approved the fixation of minimum wages for three categories of skilled, semi-skilled and highly skilled workers employed in 42 industries.

The new rate as approved by the cabinet would be effective at a rate of Rs26,000 for semi-skilled workers, Rs31,961 for skilled workers, and Rs3 3,491 for highly skilled workers with retrospective effect from January 2023.

The chief minister said that the new wages for the workers of different categories would be considered from the next financial year.

Minister Revenue Makhdoom Mahboob told the cabinet that the Federal Board of Revenue (FBR) intended to sign a bilateral agreement for data sharing with the Board of Revenue Sindh to develop an effective mechanism for the exchange of information between different public sector organisations for optimum revenue generation under the World’s Bank “Pakistan Raises Revenue” Programme.

It was pointed out that the agreement had been signed with the FBR on April 6, therefore, the cabinet granted post-facto approval.

The Health Minister Dr Azra Pechuho told the cabinet that the governing body of HANDS has proposed the establishment of a Degree Awarding Institute `HANDS- Institute of Development Studies (HANDS-IDS) at Gadap.

She added that Sindh HEC has recommended the grant of the charter. The cabinet approved the proposal and referred it to the assembly.

The cabinet on the recommendation of the Health Department appointed Justice Abdul Rasool Memon and Dr Ghulam Rasool Shah as commissioners of the Sindh Healthcare Commission.