Centre endorses KPK stance on net hydel profit

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PESHAWAR The federal government has acknowledged the demands of KPK government regarding net hydel profit (NHP) issues. A meeting of the 8th National Finance Commission (NFC) was held here in Islamabad with Federal Minister Finance in the chair to discuss the NHP issue raised by the KPK government.

According to the minutes of the meeting issued by the Finance Division Islamabad, for uncapping the finance NHP, WAPDA and Ministry of Water and Power have been directed to immediately approach the NEPRA through a tariff petition to include the NHP @ 1.10 per KWH together with annual indexation@5% payable to the government of Khyber Pakhtunkhwa. It has also been decided that the change in tariff may take affect from next fiscal year.

The meeting has decided that for payment of outstanding arrears of Rs.101.5b, the Federal government shall set aside and pay to the province a reasonable payment upfront in next fiscal year.

While for remaining amount, either the parties may decide a viable installation plan or other options may be made if so mutually agreed.

It is a great achievement of the provincial govt that its stance on the issue has been acknowledged by the federal govt in the form of record note which will provide sound basis for the provincial govt to achieve its objective.

In this regard the efforts of the financial teams of the federal and provincial governments are laudable.

Courtesy: The Nation

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