Rs 20 billion power subsidy for textile mills restored on PM orders
LAHORE: The federal government on Thursday restored Rs 20 billion subsidy to the textile mills in terms of the electricity dues charged by the power distribution companies on the directives of the Prime Minister Imran Khan, ARY NEWS reported.
A notification in this regard was issued on Thursday.
According to sources, the federal ministry for power has sent power utility bills worth millions to the textile mills in terms of the unpaid charges during the past 12 months.
However, after the recent decision, all power distribution companies are directed to withdraw the bills.
The All Pakistan Textile Mills Association (APTMA) has applauded the prime minister’s initiative and said that revival of manufacturing process would help in improving exports of the country.
Happy that the issues of the textile sector have been resolved. The discussions came to a conclusive and amicable solution. Now I hope the textile industry will focus on their capacity and increase our exports. @ansukhera @pid_gov @aliya_hamza @PTVNewsOfficial @RadioPakistan
— Abdul Razak Dawood (@razak_dawood) February 27, 2020
Moreover, Adviser to Prime Minister for Commerce, Industry and Investment Abdul Razak Dawood also commented on the development and said in his twitter post: “Happy that the issues of the textile sector have been resolved. The discussions came to a conclusive and amicable solution.”
He hoped that the textile industry would now focus on their capacity and increase their exports.
It is pertinent to mention here that on January 20, the owners of textile export industries have managed to get the court’s stay order on new power bills being prepared under new tariff after the cancellation of concessions on electricity rates.
Earlier, it emerged that the distribution companies had received the notification of the Power Division which stated ending of exemption to the textile industries from the levy of electricity bills. According to the notification, the textile mills will pay Rs20 instead of Rs12 per unit in term of electricity charges.
However, Lahore Electric Supply Company Limited (LESCO) is reluctant to accept the court’s stay order and started preparing electricity bills of the textile industries under new tariff, sources said.