Planning Commission Refused to Provide Funds for 600MW Solar Project


The government’s project of 600-MW solar plant at Muzaffargarh (South Punjab) is reportedly in jeopardy as Planning Commission (PC) has refused to extend funding due to resources constraint during the current fiscal year. Majid Hussain Memon, Assistant Chief, in a letter, duly approved by the Secretary Ministry of Planning, Development and Special Initiatives has informed Power Division that due to non-availability of savings at this stage under Public Sector Development Plan (2022-23), it is not feasible to provide additional funds of Rs 3.958 billion as Cash Development Loan (CDL) to Power Division for two unbudgeted projects approved by the Central Development Working Party (CDWP) on October 28, 2022 titled, land acquisition for installation of 600 MW solar power plant at district Muzaffargarh, (Rs 1.4 billion ) and land acquisition for installation of 600 MW solar power plant at Tehsil Athara, district Jhang (Rs 2.558 billion).

In September last year, the government had unveiled its policy on fast-track development of solar PV projects at an investors’ conference to offer projects of 600 MW. The sources said, several domestic and international parties including, United Arab Emirates, Qatar, Saudi Arabia and China have show interest in solar projects. Last month, Pakistan organized a road show in UAE to attract investment in solar projects but no any bids received yet. Alternative Energy Development Board (AEDB), sources said, was also facing issues in purchase of land in Muzaffargarh after location of project was shifted.

Related posts