Privatization of Power Plants

Immediate privatization of two power plants and power Distribution Companies (Discos) prior to their restructuring and re-organization has been opposed by Power Division. The Central Power Generation Company Genco-II, Nandipur Generation Company (Genco-III) and privatization of Power Generation Company (Genco-1) cannot be supported because Lakhra Power Generation Company is a new power plant developed under Asian Development Bank (ADB) finance. It is based on coal so the privatization of this asset cannot be initiated at present.

Power Holding Private Limited (PHPL) is a company of power sector which is specifically structured as a Special Purpose Vehicle (SVP) for holding commercial borrowing of power sector to handle the circular debt. As such it cannot be considered as an entity and cannot be shortlisted for privatization purpose. The discos of NTDC for which re-structuring and re-organization is required before considering these for privatizations. The suggestions of the Secretaries Committee were incorporated and the revised proposals pertaining to the Organization Equity under the administrative control of each Ministry were sent to the Ministers-In charge for their views. After these consultations, deliberations and incorporation of the views, an updated report along with the draft summary was submitted to the federal cabinet for discussion and decision.