Latest news with #HESCO
Business Recorder
14 hours ago
- Business
- Business Recorder
Letters sent to ministers: APTMA for revising grid connection charges, suspending FO levies
ISLAMABAD: All Pakistan Textile Mills Association (Aptma) has sought rationalization of grid connection charges, reduction in grid connection time and suspension of petroleum and carbon levies on Furnace Oil (FO). In letters to Power Minister Sardar Awais Leghari, Petroleum Minister Ali Pervaiz Malik and Director General Textile (Commerce Ministry), Chairman APTMA, Kamran Arshad stated that the government has adopted policies to transition industrial captive generation loads to grid electricity. However, the punitive levies imposed have rendered industrial operations financially unviable without offering a viable transition pathway to grid-based power. Ready to help build robust framework: APTMA questions Nepra's tariff-setting capacity Aptma maintains that the imposition of a Rs. 791/Mmbtu levy on gas used for captive power generation has made it entirely cost-prohibitive. While intended to encourage migration to the electricity grid, the reality on ground is that many industrial units still lack grid connections and, in response, have been compelled to switch to furnace oil (FO)-based captive generation. The Association stated that the imposition of a petroleum levy of Rs. 82,000/ton on FO-on top of the base price of approximately Rs. 130,000/ton—has now left these industries with no economically viable power source. Aptma has cited the example of Soorty Enterprises, a major textile and apparel manufacturer with $400 million in annual exports, employing 35,000 people across different divisions. Soorty has two mills, one in Landhi under KE and another on the Super Highway under HESCO, with a total power requirement of 35MW. Following the grid transition levy on gas, both shifted from gas to FO-fired captive generation that costs around Rs. 33/kWh, compared to around Rs. 29-30/kWh on the grid and will shoot up to Rs. 51/kWh following the levies on FO. The company prefers to run its operations on the electricity grid under KE and HESCO, as it is cheaper than FO-fired captive generation even before the levy. However, KE and HESCO have quoted a cost of Rs 8 billion each to provide grid connections to these units, totalling Rs 16 billion to be paid up front. Additionally, they have been told that it would take about 3 years to connect them to the grid, with no guarantee of timely completion or energisation. On top of this, the company would be responsible for getting approvals from several government departments (like FWO, railways, local authorities, etc.), which adds further costs and difficulties. This situation is wholly untenable. The company cannot rely on gas or FO-fired generation for 3 years with the punitive levies as it will go out of business. However, paying Rs. 16 billion upfront for a grid connection with no guarantee of timely access will also push the company towards bankruptcy. It is at a dead end, with no viable options. 'While we have highlighted the example of only one company, and that too one of the biggest exporters of Pakistan, the same issues are being faced by several of our members, particularly in urban hubs like Lahore and Karachi where issues related to right of way and land availability are prevalent,' Aptma Chief said adding that no company can afford to pay billions of rupees for a grid connection, especially without any guarantee of timely completion. On the one hand, the industry is being penalized for using alternate fuels such as gas and FO and on the other hand, it is effectively barred from accessing the grid due to prohibitively high connection charges, excessive lead times, and bureaucratic delays. It is neither reasonable nor practical for the Government to mandate grid transition while the distribution companies impose insurmountable barriers to achieving it. Considering the foregoing, Aptma recommended the following: (i) Grid connection charges for export-oriented industrial units be rationalized and brought within a financially viable range;(ii) Grid connections be completed and fully energized within a maximum period of six months from fulfillment of demand notes; and (iii) all levies on industrial captive generation -including petroleum and carbon levies on FO-be suspended until all industrial units relying on gas/FO as primary sources of energy are provided affordable and operational grid connections. Copyright Business Recorder, 2025
Business Recorder
5 days ago
- Business
- Business Recorder
PC to appoint FAs for more Discos to assess sell-off potential
ISLAMABAD: The Privatisation Commission (PC) has decided to appoint Financial Advisors (FAs) for four more power distribution companies—Hyderabad Electric Supply Company (HESCO), Sukkur Electric Power Company (SEPCO), Peshawar Electric Supply Company (PESCO), and Hazara Electric Supply Company (HAZECO)—to evaluate the potential for their privatisation. The decision was made during a meeting of the PC Board, chaired by Muhammad Ali, Advisor to the Prime Minister on Privatisation. The board's recommendations will now be forwarded to the Cabinet Committee on Privatisation (CCoP), led by Deputy Prime Minister and Foreign Minister Senator Ishaq Dar. Currently, three power distribution companies (DISCOs)—Islamabad Electric Supply Company (IESCO), Gujranwala Electric Power Company (GEPCO), and Faisalabad Electric Supply Company (FESCO)—are already in the privatisation pipeline, with Financial Advisors actively developing their privatisation models. Discos' sell-off/provincialisation: PMO directs Power Div. to expedite consultations In this second phase, the PC plans to engage FAs to advise on structuring private sector participation in HESCO and SEPCO. Proposals are now invited from qualified firms or consortia with proven experience in similar transactions. Interested parties can access the Request for Proposal (RFP)—including Terms of Reference (ToRs), Evaluation Criteria, and a draft Financial Advisory Services Agreement (FASA)—at: Applicants must submit both Technical and Financial Proposals via email and courier, along with a non-refundable processing fee of $1,000 (or equivalent in PKR), as outlined in the RFP. The deadline for submissions is July 22, 2025. The PC emphasized that this notice does not constitute a formal offer or commitment, and no express or implied warranties should be assumed. Copyright Business Recorder, 2025
India Gazette
5 days ago
- Sport
- India Gazette
"Playing sport signifies shared values of humanity, unity, and peace": Uttarakhand CM Dhami
Dehradun (Uttarakhand) [India], June 23 (ANI): Highlighting the significance of sports in daily life, Uttarakhand Chief Minister Pushkar Singh Dhami on Monday said playing a sport signifies the shared values of humanity, unity, and peace. Addressing an event organised to mark June 23 International Olympic Day, Uttarakhand CM Pushkar Singh Dhami said, ' It is a matter of great pride for us that an event has been organised in Dehradun on this International Olympic Day. This reminds us that playing a sport is not just about winning a medal but also signifies the shared values of humanity, unity and peace.' 'Today, when we talk about the Olympics, we feel proud of the achievements of our Indian athletes - be it Neeraj Chopra winning the gold medal for javelin throw, Mirabai Chanu, Lovelina or the Indian hockey team... Our Indian sportspersons, including those from Uttarakhand, are making the country proud,' he added. Earlier in the day, Padma Bhushan awardee, eminent environmentalist and founder of HESCO, Anil Joshi, met Uttarakhand Chief Minister Pushkar Singh Dhami at his official residence. The Chief Minister said that on this occasion, he had a meaningful discussion with him on important topics like environmental protection, green development, and the implementation of GEP in the state. Meanwhile, on Sunday, the CM said that the ongoing Kedarnath Yatra had become a confluence of the remarkable synergy between spiritual devotion and development in the state. Taking to X, CM Dhami announced that in a span of just 48 days, more than 11.4 lakh devotees have paid their respects at the revered Kedarnath shrine.' Describing the pilgrimage as 'a wonderful confluence of development with faith', the Chief Minister said the surge in footfall has not only strengthened Uttarakhand's spiritual landscape but also significantly boosted its local economy. 'This is not just a pilgrimage but has become a symbol of Uttarakhand's economic, cultural and spiritual prosperity. Hail Baba Kedar!' he said, sharing updates using the hashtag #CharDhamYatra2025. The annual Char Dham Yatra, which includes pilgrimages to Kedarnath, Badrinath, Gangotri, and Yamunotri, is one of the most significant religious journeys in Hinduism. The state government has undertaken a series of infrastructure upgrades in recent years--including improved roads, helicopter services, and better accommodation--to ensure a safer and smoother pilgrimage experience for devotees. This year, the Kedarnath Dham has seen an unprecedented inflow of pilgrims, which officials attribute to both improved facilities and increasing spiritual interest. (ANI)
India Gazette
5 days ago
- India Gazette
Uttarakhand CM Pushkar Singh Dhami meets Padma Bhushan awardee Anil Joshi
Dehradun (Uttarakhand) [India], June 23 (ANI): Padma Bhushan awardee, eminent environmentalist and founder of HESCO, Anil Joshi, on Monday met Uttarakhand Chief Minister Pushkar Singh Dhami at his official residence The Chief Minister said that on this occasion, he had a meaningful discussion with him on important topics like environmental protection, green development, and the implementation of GEP in the state. Meanwhile, on Sunday, the CM said that the ongoing Kedarnath Yatra had become a confluence of the remarkable synergy between spiritual devotion and development in the state. Taking to X, CM Dhami announced that in a span of just 48 days, more than 11.4 lakh devotees have paid their respects at the revered Kedarnath shrine.' Describing the pilgrimage as 'a wonderful confluence of development with faith,' the Chief Minister said the surge in footfall has not only strengthened Uttarakhand's spiritual landscape but also significantly boosted its local economy. 'This is not just a pilgrimage but has become a symbol of Uttarakhand's economic, cultural and spiritual prosperity. Hail Baba Kedar!' he said, sharing updates using the hashtag #CharDhamYatra2025. The annual Char Dham Yatra, which includes pilgrimages to Kedarnath, Badrinath, Gangotri, and Yamunotri, is one of the most significant religious journeys in Hinduism. The state government has undertaken a series of infrastructure upgrades in recent years--including improved roads, helicopter services, and better accommodation--to ensure a safer and smoother pilgrimage experience for devotees. This year, the Kedarnath Dham has seen an unprecedented inflow of pilgrims, which officials attribute to both improved facilities and increasing spiritual interest. Authorities have also deployed enhanced security and medical response teams to manage the high-altitude yatra effectively. The Kedarnath temple, dedicated to Lord Shiva, is located at an altitude of over 11,000 feet in the Himalayas and holds immense religious significance. The Kedarnath Yatra doors for the year 2025 were opened for devotees on May 2. According to an official release, local hotels, restaurants, traders, and small businesses like horse-mule, heli, and dandi-kandi services collectively did business of about three billion. (ANI)
Business Recorder
19-06-2025
- Business
- Business Recorder
World Bank may give extra $50m financing to Discos
ISLAMABAD: The World Bank is likely to extend an additional $50 million in financing to power distribution companies (Discos) under the Electricity Distribution Efficiency Improvement Project – Additional Financing (EDEIP-AF). According to the World Bank, technical discussions will be held today (Thursday) at the World Bank's Islamabad office. The proposed additional financing aims to further enhance the operational and financial performance of the Hyderabad Electric Supply Company (HESCO) and Peshawar Electric Supply Company (PESCO) through the scaled deployment of Asset Performance Management Systems (APMS). Both HESCO and PESCO, currently among the poorest-performing Discos, have not been slated for privatisation so far. Sources indicate that the technical discussions were originally scheduled for June 17, 2025. However, they were postponed after the Central Development Working Party (CDWP) delayed its approval. A senior Planning Commission official had raised questions about the PC-I and suggested revisions to the submitted documents. The additional financing is fully aligned with the project's development objectives, which include improving operational efficiency in targeted areas of selected distribution companies, supporting progress on the power sector reform agenda, and advancing the Country Partnership Framework (CPF) between the Government of Pakistan and the World Bank. During negotiations, discussions covered the draft Financing Agreement between the Government of Pakistan (the Recipient) and the World Bank (the Association), the draft Project Agreements with HESCO and PESCO (the Project Implementing Entities), the draft Project Paper (PP), the Disbursement and Financial Information Letter (DFIL), and the Environmental and Social Commitment Plan (ESCP). In line with the World Bank's Access to Information Policy, once a project is approved by the Country Director for financing, the Association publicly discloses the PP, legal agreements, and other relevant documentation. The Association may also release the PP upon its distribution to the Board, subject to the Recipient's consent. The Pakistani delegation will share data contained in the PP that may be confidential or sensitive and could potentially impact the relationship between the World Bank and the Government of Pakistan. Suggested revisions to the PP's wording were discussed to resolve any issues related to its release. The outcomes of the negotiations have been documented in mutually agreed minutes, which were signed by the heads of both delegations. These signatures represent the Government of Pakistan's approval of the legal documents. As agreed with Pakistan's Governor on the World Bank's IDA Board of Governors, the head of the Pakistan delegation's signature will also be considered as the Governor's endorsement of the statutory committee's recommendation. Copyright Business Recorder, 2025
