A day after giving administrative matters of regulatory agencies back to the line ministries, the Economic Coordination Committee (ECC) of the cabinet approved policy directives issued to the NEPRA by Ministry of Water and Power.
An official statement said Finance Minister Ishaq Dar chaired the meeting.
The ECC considered and approved policy directives to NEPRA to make the policy framework for private sector transmission line projects, 2015, consistent with the existing practice of tariff determination, for the purpose of clarity.
ECC also deliberated upon the Ministry of Water and Power’s proposal regarding implementation of 660 KV HVDC transmission line from Matiari to Lahore project.
The committee authorised the ministry and PPIB to process 660 kV HVDC Matiari-Lahore Transmission Line Project. An official source said that the transmission tariff of Matiari-Lahore transmission line was actually a bone of contention between the ministry of water and power and NEPRA. The ministry involved the ECC to make NEPRA fall in line to act upon its policy directives.
The NTDC has signed an agreement with Rs 1 per kwh transmission fee for $ 2 billion project. However NEPRA twice rejected the proposed tariff and determined Rs 0.70 per kWh as the appropriate fee.
The Chinese state owned company was reluctant to implement the project on the NEPRA determined tariff and wanted the same tariff on which deal with NTDC was signed. NEPRA refused to accommodate the government without valid reasoning.
Mandarins of Ministry of Water and Power were stressing amendments in the rules of business under which NEPRA would mandatory have to act upon the policy directives of the ministry without any “ifs and buts”.