Renewable power plants: Sindh cabinet approves allotment of land to NTDC, 10 other companies

The Sindh Cabinet meeting held under the chairmanship of Sindh Chief Minister Syed Murad Ali Shah approved the allotment of 5,801 acres of land to National Transmission and Dispatch Company (NTDC) and 10 private firms on 30-year lease to install renewable power plants and National Grid Station under the guidance of the Supreme Court of Pakistan.

The allotment of 5,801 acres of land to 10 power companies, including NTDC would fetch Rs9.13 billion. The cabinet also allowed the operators of renewable power plant to install other power plants, if they so desire subject to the fulfillment of government requirements and clearance of lease money.

Energy Minister Imtiaz Shaikh told the cabinet that 10 renewable power companies, wind and solar, and NTDC have applied for allotment of land measuring 5801 acres for installation of wind and solar projects in three districts, Thatta, Dadu and Jamshoro. He said that seven projects would be installed in Thatta district one, in Dadu and other one in Jamshoro.

The concerned deputy commissioners have reported availability of land and have also suggested annual lease money at a rate of RS3000, Rs5000 and Rs8000 per acre per annum for different categories of land. Senior member BOR Kazi Shahid Pervez told the cabinet that the land could be allotted as per guidance of the Supreme Court. The cabinet approved the allotment of land and directed SMBR to make necessary arrangements.

The cabinet meeting held at New Sindh Secretariat on Tuesday was attended by Chief Secretary Mumtaz Shah, provincial ministers, advisors and concerned officers. Sindh Bank: Secretary Finance Hassan Naqvi told the cabinet that the Sindh Bank faced a substantial shortfall in capital and the Capital Adequacy Ratio (CAR) which is a ratio of the risk weighted assets/loan of the bank, deteriorated.

The Sindh cabinet, keeping in view the situation, decided to inject Rs14.7 billion in Sindh Bank, against which the provincial government has injected Rs9.7 billion. The cabinet approved another tranche of Rs2 billion to inject in Sindh Bank and merged Sindh Leasing Company into the bank.

Sindh Bank President Imran Samad told the cabinet that Sindh Bank account have improved from Rs14.5 billion to Rs18 billion. According to state bank requirement the Capital Adequacy Ratio (CAR) of the bank should be at least 11.90 percent and now the Sindh bank's CAR has reached to 16.65 percent. This showed that the financial strength of the bank has improved considerably. The cabinet was informed that the bank has recovered Rs90.30 million band loans. Therefore, the cabinet allowed the bank to advance bank loans to its employees

The cabinet was also informed that Sindh Micro Finance Bank (SMFB) has advanced small loans of Rs2.2 billion to impoverished women to launch their small businesses. The SMFB was running in profit. Therefore, the Sindh cabinet withdrew the consideration of merging SMFB into Sindh bank.

The cabinet also approved a proposal under which all the Sindh government departments, subordinate organizations and institutions would deposit their accounts, including salary accounts in Sindh Bank. Onward all grants to public or private institutions would be given on the condition that they would maintain an account in Sindh Bank, particularly as far as Sindh government finances were concerned.

SHEC: The department of University & Board presented an amendment in the Sindh Higher Education Commission Employees (Recruitment) Rules 2014 under which all posts, including the post of secretary/executive director was to be made open to civil servants as well as people from academia background from open market.

The cabinet, in principle approved the amendment in rules but simultaneously directed secretary (U&B) to work out detailed salaries packages, pays scales and other benefits of the employees to be posted in high education commission.

Ban on recruitment in universities: The cabinet also noted seriously that on the one hand universities, under the control of provincial government, were making hue and cry for shortage of funds and on the other they were making recruitments continuously. The Cabinet through secretary (Universities & Boards) issued directives to the universities to stop recruitment till their financial strength was improved. However, necessary recruitments could be made with the approval of the government.