Sindh Produces 70pc Gas But Forced To Pay RLNG Charges: CM Murad

KARACHI, (UrduPoint / Pakistan Point News - 2nd Aug, 2024) The Sindh Chief Minister Syed Murad Ali Shah has said that the electricity generated by the Nooriabad power plant costs Rs15 per unit, however, industrial units are being charged Rs48 per unit.

Additionally, despite Sindh contributing to over 70 per cent of the country's gas production, industries in our province were facing gas shortages and were forced to pay RLNG charges.

This he said while speaking at the inauguration ceremony of “My Karachi – Oasis of Harmony Exhibition 2024 at Expo Center on Friday morning. The program was attended by provincial ministers- Sharjeel Memon, Jam Khan Shoro, Jam Ikram Dharejo and Zulfiqa Ali Shah, said a CM house communique.

The CM said that he was cognizant that the electricity tariff had gone way too high, and the industries were rapidly losing their viability, therefore there were reports that the closure of industries had started taking place. “We are pursuing this matter as well and, in this regard, 'I would like to inform the audience that we are going to have an electricity generation and distribution company in Sindh very soon and we are in the process of doing that,” he disclosed.

Murad Shah mentioned that the electricity being produced by the Nooriabad power plant costs Rs15 per unit, but it is being provided to the industrial units at Rs48 per unit, which has badly affected the industrial establishments, leading them to consider closing down.

“I am aware that even though Sindh explores over 70 per cent of the country’s gas, industries of our province face gas shortages and are compelled to pay RLNG charges which is not a wise thing to do,” the CM said. He added that he had been taking up this particular issue and would continue to pursue it until it was resolved.

The CM Murad Shah stated that Sindh is a powerhouse of energy, and we are supplying inexpensive electricity to the national grid from the Nooriabad power plant, Gharo, and Thar projects. "The tariff at Sindh Nooriabad is Rs15 per kWh, and the Nooriabad transmission line, laid by the Sindh government, has a tariff of Rs. 0.79 per kWh. The Gharo Solar tariff is Rs17.43 per kWh, and the Thar tariff is also lower than other power plants."

The CM mentioned that Thar has vast coal reserves that could meet the country's energy requirements for hundreds of years.

"The coal is utilized to produce urea, gas, and diesel," he stated and emphasized that the Federal government should focus on the coal of Thar. "Currently, the cheapest energy in the country is produced from Thar Coal," he added.

Murad Shah also recalled that during her tenure as prime minister, Shaheed Mohtarma Benazir Bhutto brought the cheapest electricity to the country. The IPP Power policy of Shaheed Mohtarma Benazir Bhutto was adopted by Bangladesh but unfortunately, it faced devastation here.

The CM suggested that the issue of Capacity Charges could be renegotiated with the IPPs to resolve it through a long-term plan. "If the ad hoc policy of capacity charges continues unabated, the issue will not only remain unresolved but will worsen further," he expressed.

Mr. Murad Shah stated the need for restructuring the power tariff to provide relief to the people and industrialists and suggested that if there is a shortage of funds for the development of transmission lines, industrial units consuming more energy should be shifted closer to power plants.

He also emphasized that Karachi is the heart, economic hub, and largest revenue generator of the country. He mentioned that although Karachi was declared the 6th most dangerous city in the world, the law & order situation has significantly improved due to serious efforts and political will of the Sindh government.

Mr. Shah expressed the commitment to further improve the peaceful situation in Karachi, addressing challenges faced by its trade and industrial sectors, and elevating the city's contribution in terms of exports from 54 per cent to 80 per cent and beyond. He stressed that Karachi is the lifeline of the nation and assured that every issue affecting trade and industry in Karachi is of utmost importance to his government.

Additionally, he urged traders to work together to ensure the growth of Karachi's industrial sector and called for collaboration to drive economic growth and prosperity in the province and the country. Mr. Shah also outlined the infrastructure development projects undertaken by the government to make the city more livable and inaugurated the My Karachi- Oasis of Harmony exhibition.