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Power Ministry seeking tax exemption from FBR for CPEC energy projects

Power Ministry seeking tax exemption from FBR for CPEC energy projects

ISLAMABAD: Power Ministry is negotiating with the Federal Board of Revenue (FBR) to introduce tax exemption for power sector projects being carried out under the China-Pakistan Economic Corridor (CPEC).

Minister for Power Awais Ahmed Khan Leghari assured this to power-sector investors during a meeting with project sponsors. The huddle was in line with the commitment to facilitating the investors and resolving the challenges being faced by ongoing projects under the China-Pakistan Economic Corridor (CPEC) to ensure their timely completion.

Chinese Deputy Head of Mission M Lijian Zhao, nominated by the Chinese embassy as the focal person for power projects, co-chaired the meeting along with the Power Division minister.

People representing alternative energy projects – wind and solar power – including Hydrochina Dawood Power, Sachal Energy, Three Gorges, Western Energy and Crest Energy briefed the meeting about their projects.

Responding to the investors on complaints of delay and extension in the Letter of Support and the Letter of Intent, Leghari, who is also the chairman board of directors of the Private Power and Infrastructure Board (PPIB), directed the PPIB to hold its next meeting on January 11.

PPIB will thoroughly work out details of these requests and put before the board for its consideration and decision on merit.

The meeting was also briefed by the representatives of1320MW Port Qasim Coal Power Plant and 1320MW Sahiwal Coal Power Plant regarding their operations and the future development activities.

Representatives from Hub Power Coal power project, Gawadar Coal Power Project, Sukki Kinari Hydro Power Project, Karot Hydo Power Project and Kohala Hydro Power Projects besides the china state grid sponsored Matriee-Lahore HVDC Transmission Line project briefed the meeting regarding the progress and the time line achieved so far in execution of these projects.

Representatives from alternative energy projects (Wing solar ) including Hdro China Dawood Power, Sachal Energy, UEP, Three Gorges, Western Energy, Chacho Wind, Applo Solar and Crest Energy, Best Green also briefed the meeting regarding their projects.

Responding to the investors on the issue of delay and extension of LOS and LOI the Minister for Power Division being also the Chairman of the BOD of PPIB directed the PPIB to hold its next meeting on 11th January 2018. He further directed the PPIB to thoroughly work out the details of these request and put before the BOD for its merit consideration and decision.

The Minister for Power Division while making it clear that no further extension for delay would accorded said that case for one time extension will be presented before the PPIB BOD for consideration.

The Minister also assured the investors that the Power Division is also in close negotiation with FBR on the issue of exemption of tax and related matter and positive results are expected soon.

The Minister also directed the NTDC to sit with coming power projects in Thar to ensure timely provision of feedback. He also directed the NTDC to provide all out support to the investors so that they may be able to evacuate the power as soon as they achieve the COD.

The Minister also directed the Power Division to hold meeting with Provincial Governments of Balochistan and KPK for early provision of land for Gawadar Coal Power Project and Sukki Kinari Hdro power Project respectively.