Pakistan Sugar Mills Association (PSMA) is lobbying for an increase in tariff for power co-generation projects and in this regard its representatives met with Water and Power Minister Raja Pervez Ashraf in the absence of National Electric Power Regulatory (Nepra) officials.
The Managing Director of Private Power Infrastructure Board was a participant, though he was disallowed by the Prime Minister House to attend a power co-generation meeting held at the PM House a few weeks ago. PSMA is asking for an upfront tariff of 11 cents per unit for all the sugar mills against the existing indicative tariff of 7.8 cents, which Nepra believes, is too high.
Raja Pervez Ashraf assured PSMA that the government will provide maximum incentives and resolve all pending issues. He said that the joint efforts from the government and the industry will help the country come out of the existing energy crisis. The minister also directed the PPIB MD to process the proposals of sugar industry for co-generation projects on a fast track basis.
Earlier, PSMA Chairman Shunaid Qureshi briefed the meeting that 77 sugar mills are producing 12 tons of baggase that can generate over 2000 MW by co-generation power plants. He said that initially the industry can generate 1000 MW within two years. He also briefed the meeting on how the government can provide assistance for early implementation of the co-generation projects.