Govt sells outdated state-owned power plants for Rs 46.73 Billion

ISLAMABAD: The federal government has successfully sold 61 units of outdated and non-functional power plants, owned by state-run power generation companies, for Rs 46.73 billion across the country.

The officials in the Ministry of Energy have said that the selling price exceeded the reserve price of Rs 45.817 billion set by State Bank of Pakistan (SBP) experts.

This sale is part of the government’s effort to optimize resources and reduce costs.

In the first phase, a total of 31 units were sold to private bidders for Rs 8.475 billion, surpassing the reserve price of Rs 7.593 billion. Agreements have also been signed with successful bidders.

Furthermore, the government auctioned 30 more state-owned power plants for Rs 38.255 billion in the second phase, slightly above the reserve price of Rs 38.224 billion. The contracts for this phase have also been concluded.

The second phase involved plants such as Jamshoro JPCL Block I & II, Guddu II, Sukkur, Quetta, Muzaffargarh Block I and Block II, and Faisalabad.

The sale will save billions of rupees annually, as the government was spending a significant amount on maintaining these inefficient power plants, the official said.

Moreover, the employees from these power plants are being redeployed in electricity distribution companies (DISCOs), ensuring their services are utilized effectively.

The sale will also benefit electricity consumers, as capacity charges for these plants were previously included in their bills.