Old power plants' scrap sold for Rs46.7b
Thermal power projects of 4,000MW capacity had been abandoned by China under the economic corridor project and Pakistan government was now trying to divert that investment to hydroelectric power projects. PHOTO: FILE
The Power Division has completed the sale of scrap from 61 old and non-functional government-owned thermal power plants, generating Rs46.73 billion, which was higher than the original reserve price.
According to the Power Division, the auction process was carried out in two phases. Experts from the State Bank of Pakistan helped determine the reserve price, which was set at Rs45.82 billion. The final sale price surpassed expectations, reaching Rs46.73 billion.
In the first phase, scrap from 31 units was sold for Rs8.47 billion against a reserve price of Rs7.59 billion. All contracts with successful private bidders have been finalised.
In the second phase, 30 additional units were sold for Rs38.25 billion, marginally above the reserve price of Rs38.22 billion. This phase also concluded with the execution of all agreements.
Among the power plants included in the second phase were Jamshoro Block I & II, Guddu II, Sukkur, Quetta, Muzaffargarh Block I & II and Faisalabad. Permanent staff from these plants is being redeployed across different electricity distribution companies to utilise their skills more effectively.
A spokesperson for the Power Division emphasised that these outdated and idle plants had long burdened the national exchequer, costing billions annually. With their successful offloading, the government has eliminated recurring expenses and capacity charges that were previously passed on to electricity consumers through monthly bills.
The initiative, undertaken under the directives of the prime minister, is being hailed as a significant reform milestone. It not only relieves fiscal pressure but also offers direct benefits to consumers, marking a practical step towards long-term energy sector sustainability.