ISLAMABAD: This is with reference to a news captioned “Rs67bn loss caused thru misuse of subsidized RLNG for EoUs” published in Business Recorder on 23rd May 2023.
In this context, it is submitted that there was no restriction regarding installation of co-generation facility for Captive Power Units, prior to the CCoE decision dated 21.02.2021.
Rs67bn loss caused thru misuse of subsidised RLNG for EoUs
In compliance to the CCoE decision dated 21.01.2021, cogeneration facility was made compulsory for Captive Power Units by SNGPL, subject to some exemptions for a certain period of time, ie, till such units are provided sufficient load for electricity by the respective DISCOs.
Therefore, it is clarified that during October 2018 to January 2021, there was no condition/embargo on SNGPL regarding supply of gas/RLNG (including concessionary tariff) to only those CPPs where co-generation facility was installed. Copy of the letter is attached for ready reference.
Moreover, it is the FBR/Ministry of Commerce which establishes that an industrial unit availing utilities under specific consumer number falls and qualifies as exporter for the GoP subsidy. SNGPL merely acts accordingly.
It is further submitted that the instructions/recommendations of the FBR, Ministry of Finance and Ministry of Commerce w.r.t. categorization of any unit as export industry and applicability of subsidized tariff, conveyed through Petroleum Division are complied with by SNGPL.
As regards the statement in above news, ie, “SNGPL claimed the subsidy of Rs.105 billion from October, 2018 to June 2022,” is concerned, the same is correct. Moreover, we understand that concerned ministries/quarters proceed the SNGPL subsidy claims after fulfilling the all necessary formalities and procedures.
Therefore, the statement that “but no validation of SNGPL’s claim was done and compliance instructions (SOP) of Finance/Petroleum Division was not ensured by DG Gas,” is not correct. Story was based on special audit report.
Copyright Business Recorder, 2023