ISLAMABAD: The Economic Coordination Committee (ECC) of the federal cabinet approved the release of subsidy for the supply of RLNG to export-oriented industry for the month of March last year.
Federal Minister for Finance and Revenue Shaukat Tarin presided over the meeting of the Economic Coordination Committee (ECC).
The cabinet committee approved the summary and decided to form a sub-committee consisting of Adviser to PM on Commerce, SAPM on Power and other relevant stakeholders to review the power subsidies provided to export oriented sectors and submit a holistic proposal.
Power Division presented another summary before the committee regarding release of the first installment of payment to the Independent Power Producers (IPPs).
The ECC constituted a sub-committee chaired by the federal minister for finance, comprising ministers and secretaries from energy, petroleum and other concerned ministries for further deliberations. The committee would present a firmed-up proposal before the next ECC meeting for approval.\
In September 2018, the ECC decided to supply gas to industrial units of five zero-rated sectors including textile, including jute, carpets, leather, sports and surgical goods on basis of 50:50 for domestic gas and RLNG from 28:72 at the weighted average gas tariff of $6.5 per million metric British thermal unit.
Due to the differential in the sale price of RLNG and domestic gas, the supply at this rate required subsidy. Later that month, the ECC decided that 100 percent RLNG should be provided to zero–rated industry for three months, December to February, and a blend of system gas and RLNG of 50:50 should be provided to zero-rated industry for a period of nine months from March to November.
The committee also approved various Technical Supplementary Grants (TSGs) including Rs22.7 million for the Law and Justice Division for meeting the shortfall of funds under various administrative and related heads and Rs0.025 million in favour of the Ministry of Human Rights to fund the National Trust for the Disabled (NTD) Islamabad.
It also approved Rs7.2 million in favour of Ministry of Housing and Works for development schemes of the Interior Division and Rs262 million in favour of Ministry of Housing and Works for meeting various necessary expenses