61 government-owned scrap power plants sold for Rs46.73bn

ISLAMABAD: Around 61 government-owned defunct power plants have been sold for Rs46.73bn, according to the Power Division.

Employees from these now-defunct plants are being redeployed to electricity distribution companies to better utilize their expertise. These government plants were previously incurring annual expenses running into billions of rupees.

This sale has not only resulted in annual savings of billions of rupees at the national level, but the services of employees are also being effectively utilized.

The Power Division announced on Friday that the government has successfully sold scrap from 16 defunct power plants, generating Rs46.73 billion in revenue.

According to an official statement, significant progress has been made in disposing of obsolete assets from government-owned power generation plants. The reserve price for scrap from a total of 61 units was set at Rs45.817 billion, as assessed by experts from the State Bank of Pakistan. The final sale exceeded expectations, bringing in Rs46.73 billion.

In the first phase, scrap from 31 units was auctioned to private bidders for Rs8.475 billion, surpassing the reserve price of Rs7.593 billion. Contracts with successful bidders in this phase have already been finalized.

During the second phase, scrap from an additional 30 units was sold for Rs38.255 billion, slightly higher than the reserve price of Rs38.224 billion. These contracts have also been completed.

The government thermal power plants included in the second phase are Jamshoro Block I & II, Guddu II, Sukkur, Quetta, Muzaffargarh Block I and Block II, and Faisalabad.

Earlier, China agreed to the conversion of three coal-fired power plants in Pakistan from imported coal to local coal, these plants generating most expensive electricity in Pakistan with imported coal.

Finance Minister Muhammad Aurangzeb and Energy Minister Owais Leghari, currently visiting China, sources said.

These plants include the 1,320-megawatt Sahiwal Coal Power Plant, the 1,320 MW Hub Power Plant and 1,320 MW Port Qasim Power Plant, known for producing some of Pakistan’s most expensive electricity.