Mian Mansha’s Nishat Power taking 32pc profit, Senate told

ISLAMABAD: Industrialist-cum-banker Mian Muhammad Mansha’s Nishat Power was taking 32 per cent profit, however other independent power producers were allowed to take 17 per cent profit, the Senate standing committee on power was told on Tuesday.   

The additional secretary power told the Senate body that the government was paying capacity charges to 41 private power plants. He said that no capacity charges were paid to Reshma power plant.

The Senate committee meeting chaired by Senator Fida Muhammad had sought National Electric Power Regulatory Authority (NEPRA) over providing excessive benefits and profits to Reshma power plant.

The officials failed to give answers about the generation capacity and production of Reshma power plant  in the meeting. Senator Nauman Wazir lashed out at NEPRA and power ministry for turning blind eye over irregularities in the power sector and said that the Nishat Power was taking 32 per cent profit over its investment.

However the representative of Reshma power told the meeting that the plant was generating 5 to 6 percent of its capacity. He said that different plants of the company were facing wheeling issues and added that NEPRA’s wheeling laws were not being implemented.

The representative said that the government who approached the court against the rental power, itself had sighed the agreements.

Speaking on the occasion, Minister for Power Omar Ayub Khan asserted that Pakistan will generate 30 per cent of its energy via renewable sources by 2030.

He underscored the need for large-scale reforms pertaining to power distribution sector and added that that they would divide Lahore Electric Supply Company (Lesco) , Peshawar Electric Supply Company (Pesco), Multan Electric and Power Company (Mepco) and Tribal Electricity Supply Company (Tesco) to improve their performance. The minister said that a committee was working on reforms for Power distribution firms.