960416

Govt to relax

output capping

condition on

power plants

AMANULLAH BASHAR

KARACHI: The Federal Government has decided to relax the condition of capping the production capacity of the power plants coming up in the private sector at 3000 megawatts, reliable sources told Business Recorder here on Tuesday.

The limit on power production was fixed by the government on the recommendation of the international donor agencies, in view of the large number of firms seeking government permission for generation. However, most of them have not yet reached their financial close despite extension in time allowed by the government.

Informed sources said that installed capacity of 3000 megawatt might not ensure dependable supply upto that limit. Therefore, the limit of the power generation was increased by 56 percent upto 4500 mw, which ensure dependable supply of 3000 mw, sources said.

It is however not yet clear whether the Hubco power project which alone will produce 1292 megawatt by April 1997 is subject to the limit or not, but it is generally believed that Hubco will be exempted.