Sindh to argue before CCI against planned power plant on CJ link canal

Sindh’s chief minister said on Thursday that the Chashma-Jhelum link canal is neither a perennial canal nor a flood canal, because it has no assured supplies throughout the year, so if it has no allocation in the 1991 water accord, how can a hydropower plant be set up there.

CM Syed Murad Ali Shah made these observations during a meeting that he chaired to prepare for the Council of Common Interests (CCI) assembly that Prime Minister Imran Khan has convened on December 11.

The chief executive reviewed the agenda and directed the interprovincial coordination department to make the necessary preparations for the CCI meeting by arranging all the relevant summaries.

Based on those summaries, the CM will present the provincial government’s points of view on the water accord, the energy policy, the return of the withholding tax that the Federal Board of Revenue (FBR) deducted directly from the Sindh excise department’s account and other important matters.

The meeting discussed that last month the Indus River System Authority (Irsa) issued a no-objection certificate (NOC) for the installation of a 25 megawatt hydropower plant on the CJ link canal.

Sindh’s government is of the view that Irsa is not a competent forum to issue such an NOC, so the matter should be taken up in the CCI. The CM directed the irrigation department to prepare a case and present it to him within a week.

WWF, EOBI

By virtue of the 18th constitutional amendment, the Sindh Assembly passed the Sindh Workers Welfare Fund (WWF) Act 2014 and the Sindh Employees Old-age Benefits Act 2014, so both the Workers Welfare Ordinance 1976 and the Old-age Benefits Act 1976 have been repealed to the extent of the province.

The CM said the federal government should hand over the administrative control of the WWF and the Employees Old-age Benefits Institution (EOBI) as well as the due share of assets of the WWF and the EOBI to the Sindh government. He directed the labour department to prepare a case accordingly.

Petroleum policy

The federal government has proposed an amendment to the Petroleum (Exploration & Production) Policy 2012, in which the concept of five per cent carried working interest has been incorporated.

This means that the provincial government will have to pay five per cent of the expenditures of the carried out work even if the exploration work does not succeed.

The CM said his government is against such a carried working interest, as it will greatly drain the province’s resources. He urged the energy department to prepare a case accordingly.

PSQCA-Sindh issue

An issue between the Pakistan Standards & Quality Control Authority (PSQCA) and the provincial food authorities has emerged over their role as quality controlling and regulatory authorities.

The CM said the Sindh government feels that after the 18th amendment, food articles being provincial domain are subject to be regulated, inspected, registered, licensed and enforced by the provincial food authorities in their respective provinces.

He directed the food authority to prepare a case.

Vertical programmes

On June 30, 2011 the Federal Ministry of Health had devolved all its vertical programmes to the provinces. In its April 28, 2011 meeting the CCI had decided that the federal government would fund vertical programmes only until the next National Finance Commission Award.

The CM said that around Rs13 billion as liability or claim of the Sindh government need to be promptly disbursed by the federal government. He directed the health department to prepare a case.

Deduction by FBR

The excise & taxation department told the CM that on account of withholding tax, the FBR had deducted over Rs8 billion at source from the provincial government’s account.

The CM directed the E&T department to prepare a case mentioning all the details as well as the meetings held with the FBR so that the amount may be reimbursed through the forum of the CCI.