Power and energy: K-Electric may be nationalised, hints Ali

Minister says that the company had defaulted over Rs100b.


Our Correspondent February 17, 2015
State Minister for Power Abid Sher Ali. PHOTO: INP

HYDERABAD: K-Electric, it seems might be inching closer toward nationalisation as the private company allegedly defaulted a payment of around Rs100 billion to state-owned companies.

Water and power minister Abid Sher Ali hinted about this possibility at a press conference on Tuesday. He also stated that the subsidised sale of the power to K-Electric will be discontinued.

According to Ali, K-Electric had not paid Rs53 billion to the Sui Southern Gas Company, Rs33 billion to the National Transmission and Dispatch Company (NTDC), Rs3 billion to Pakistan State Oil and up to Rs2 billion to Pakistan Television, among others.

K-Electric’s five-year contract with the NTDC, which treated the company at par with the government's distribution companies, expired last month.

Ali said that the National Electricity and Power Regulatory Authority, SSGC and NTDC were completing formalities by writing letters to K-Electric to ask the company to clear their dues. The company has been given two to three weeks after which action will be taken against it, he added.

Published in The Express Tribune, February 18th, 2015.

COMMENTS (2)

Karachiwala | 6 years ago | Reply From 2008 to 2013 its was PPP who looted karachi. -no Local bodies election -no funds for karachi from sindh budget -no developments Pocketed all the sindh budget for their lifestyles. Now the PML-n wants its share. soon we will be blessed with the royal service of wapda!!! and chunk of money will flow to PML-n Karachi-- you are Orphan!
Ahmed Sh | 6 years ago | Reply Since the job our beloved minister is doing with Wapda all over the country why not take some more on the plate?! Soon Karachites would get the royal facility of high bills no power available in rest of the country. Once nationalized we would also learn lesson in equality and get rolling cuts not withstanding the percentage recoveries and theft. Of course I am pretty sure that Minister won't take away our preferential rates under which we pay more per unit than rest of the country and our given way less subsidy per unit.
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