Provincial cabinet in its meeting on Thursday decided to exempt electricity production from all type of taxes which aimed to encourage investment in the power sector and develop electricity production in the province.
For this purpose, the cabinet which met with NWFP Chief Minister Akram Durrani in the chair approved new Hydel Power Policy 2006, to attract more investment in power sector, provincial minister Asif Iqbal told newsmen at Media Centre here while briefing about decision made in the cabinet meeting.
Officials of SHYDO (Sarhad Hydel Development Organisation), he said, briefed the cabinet about hydel power projects and expected electricity production.
He said that the cabinet formally approved the new hydel power policy 2006. The minister said that about 40,000MW power could be produced from water in the country, of which 70 percent could be produced in Frontier province.
He said that the rivers in NWFP had the capacity to produce about 50,000MW electricity, which could cater with demand of the country and even could be exported to other countries.
Asif Iqbal said presently about 6650MW electricity was being produced from water in the country, in which NWFP shared 3767MW. The minister disclosed that the SHYDO had identified projects of 6000MW power, adding that besides these schemes there were many places in the province where thousands of megawatt power could be produced.
He said that under hydel power policy 2001, only 20MW electricity was allowed, while in new policy, 50MW electricity could be produced, which could be utilised for both industrial and commercial purposes.
"Any one could buy or sell power project for investment after permission from SHYDO," he said, adding that the provincial government would provide protection to investors and facilities under one-window operation.
He said that the provincial government would not levy any tax on any (power) project and initial two years would be considered as holiday period, so that maximum investors could be wooed in regard. He said that all projects would be completed on the basis of prepare, run and hand over basis.
He said that the lease period of hydel power projects was increased from 33 years 50 years.
Daudzai said that the provincial government had also fixed advanced eligibility fee lower than the Centre, adding the NWFP would charge $500 as advanced eligibility fee for one to fifty megawatt project, while the centre was charging $1,000, similarly other fees were also fixed lower than the federal government.
He said that the provincial government had consulted Wapda and Nepra before finalising the new power policy.
The provincial cabinet also approved amendments in Local Govt Ordinance 2001, besides putting high education department under the control of provincial government instead of district government.
The cabinet also okayed Government University Acts ordinance (amended) bill according to the decision of the Shariat court, which after approval from NWFP governor would become a law.