Punjab’s budget: Province to pour Rs31b into energy projects
Allocation 52% more than that provided in outgoing year.
Clean energy: Rs3.8b is the amount Punjab will spend on producing 20MW from four hydroelectric power stations. PHOTO: EXPRESS/FILE
LAHORE:
The Punjab government in its budget for fiscal year 2014-15 has set aside Rs31 billion for a raft of projects in the energy sector – a critical area that has got top priority in the face of widespread shortages and their crippling impact on the economy.
The allocation is about 52% higher than the amount earmarked by the province in the outgoing fiscal year.
According to budget documents unveiled on Friday, of the total allocation for the energy budget, new schemes numbering 12 will receive Rs17.61 billion in the new fiscal year beginning July while five ongoing projects will get Rs4.39 billion.
For existing schemes, the provincial government will cough up Rs1.34 billion and the remaining Rs3.05 billion will come in shape of foreign aid. No external assistance will be in place for the new energy schemes.
Apart from the 17 schemes, an amount of Rs9 billion will be injected into 1,000-megawatt Quaid-i-Azam solar park based in Bahawalpur. Total cost of the project is estimated at Rs17 billion.
Since taking the reins of the province for a second five-year term in a row, the Punjab government of Shahbaz Sharif is paying special attention to developing the energy sector and is trying to tap all available resources for electricity production.
The government is wooing private sector to pump money into energy schemes and for this reason two public-sector companies – Punjab Power Development Company and Punjab Quaid-e-Azam Solar Company – have been set up to step up work on the projects.
Punjab’s private sector has already labelled electricity shortage as the biggest hurdle in the way of doing business, especially for the textile industry.
It is believed that the province, which consumes 68% of total power supply, can increase its Gross Regional Product by 2% and raise exports by $1 billion, if it becomes self-sufficient in energy generation.
Under the renewable energy development and investment programme, the province will spend Rs3.8 billion on producing 20MW from four hydroelectric power stations. Total cost of these dams is projected at Rs13.3 billion.
An interesting feature of the energy budget is the initiative to disconnect 36 villages of the province – one each from every district – from the electricity grid. They will be supplied electricity by utilising renewable and clean energy sources like biomass, biogas, solar, wind and small hydroelectric power projects. For this, the province has earmarked Rs50 million for conducting feasibility studies.
In an effort to ensure uninterrupted electricity supply to industrial parks, the provincial government will establish four coal-fired power plants – each of 55MW. Two plants will be set up at the Faisalabad industrial estate and another two at the Sundar industrial estate, Lahore costing an estimated Rs1 billion each.
In the new fiscal year, the government has allocated Rs450 million for each of the industrial parks.
Biomass-based power plants will also be set up, with an allocation of Rs2 billion, near major wheat and rice producing areas. Another Rs500 million has been set aside for establishing bagasse-cum-coal based power plants near sugarcane producing districts.
The government has also planned to set up six coal-fired power plants – each having capacity of 1,320MW – with the assistance of private investors. For this, land and logistics infrastructure have been provided by the provincial government.
Published in The Express Tribune, June 14th, 2014.
The Punjab government in its budget for fiscal year 2014-15 has set aside Rs31 billion for a raft of projects in the energy sector – a critical area that has got top priority in the face of widespread shortages and their crippling impact on the economy.
The allocation is about 52% higher than the amount earmarked by the province in the outgoing fiscal year.
According to budget documents unveiled on Friday, of the total allocation for the energy budget, new schemes numbering 12 will receive Rs17.61 billion in the new fiscal year beginning July while five ongoing projects will get Rs4.39 billion.
For existing schemes, the provincial government will cough up Rs1.34 billion and the remaining Rs3.05 billion will come in shape of foreign aid. No external assistance will be in place for the new energy schemes.
Apart from the 17 schemes, an amount of Rs9 billion will be injected into 1,000-megawatt Quaid-i-Azam solar park based in Bahawalpur. Total cost of the project is estimated at Rs17 billion.
Since taking the reins of the province for a second five-year term in a row, the Punjab government of Shahbaz Sharif is paying special attention to developing the energy sector and is trying to tap all available resources for electricity production.
The government is wooing private sector to pump money into energy schemes and for this reason two public-sector companies – Punjab Power Development Company and Punjab Quaid-e-Azam Solar Company – have been set up to step up work on the projects.
Punjab’s private sector has already labelled electricity shortage as the biggest hurdle in the way of doing business, especially for the textile industry.
It is believed that the province, which consumes 68% of total power supply, can increase its Gross Regional Product by 2% and raise exports by $1 billion, if it becomes self-sufficient in energy generation.
Under the renewable energy development and investment programme, the province will spend Rs3.8 billion on producing 20MW from four hydroelectric power stations. Total cost of these dams is projected at Rs13.3 billion.
An interesting feature of the energy budget is the initiative to disconnect 36 villages of the province – one each from every district – from the electricity grid. They will be supplied electricity by utilising renewable and clean energy sources like biomass, biogas, solar, wind and small hydroelectric power projects. For this, the province has earmarked Rs50 million for conducting feasibility studies.
In an effort to ensure uninterrupted electricity supply to industrial parks, the provincial government will establish four coal-fired power plants – each of 55MW. Two plants will be set up at the Faisalabad industrial estate and another two at the Sundar industrial estate, Lahore costing an estimated Rs1 billion each.
In the new fiscal year, the government has allocated Rs450 million for each of the industrial parks.
Biomass-based power plants will also be set up, with an allocation of Rs2 billion, near major wheat and rice producing areas. Another Rs500 million has been set aside for establishing bagasse-cum-coal based power plants near sugarcane producing districts.
The government has also planned to set up six coal-fired power plants – each having capacity of 1,320MW – with the assistance of private investors. For this, land and logistics infrastructure have been provided by the provincial government.
Published in The Express Tribune, June 14th, 2014.