Gas suspension to CPPs will cripple industry: KCCI

KARACHI: President of the Karachi Chamber of Commerce & Industry (KCCI) Muhammad Jawed Bilwani expressed dismay over the government’s decision to suspend gas supply to captive power plants (CPPs) by 2025.

He warned that this decision, made under the IMF agreement, could lead to widespread closures of medium- and large-scale industries, as significant investments in these plants would be wasted. He emphasized that such losses would be unbearable for the industry, especially since industries cannot rely on the unstable electricity supply from power distribution companies.“Shutting down captive power plants is undoubtedly a wrong move. The government must reconsider this decision and immediately negotiate with the IMF to withdraw the condition to suspend gas supply to captive power plants. Otherwise, it will cause irreparable damage to the country’s economy through the massive closure of industries," Bilwani said in a statement issued on Wednesday.

He highlighted that the government had previously encouraged the business community to establish captive power plants, assuring them of an uninterrupted gas supply, as the country was facing a severe electricity crisis at that time. This encouragement led to significant investments in CPPs, which are 64 per cent more efficient than independent power producers (IPPs). Combined cycle CPPs utilize the heat emitted from power plants to run heat recovery boilers for generating steam, and the emission from these boilers is used to generate hot water. “No industrialist will be able to withstand the shock of a captive power plant’s closure due to gas suspension.

It is well-known that many industries simply cannot rely on K-Electric’s inconsistent and unreliable electricity supply, which often disrupts sensitive machinery and halts the entire production process for hours due to minor fluctuations lasting just a few seconds,” Bilwani said, strongly criticizing the Planning Commission.