HUBCO Rebukes Claims of Benefiting from GIDC
Hub Power Company Ltd, in a recent press release, rejected the allegations of being profited from Gas Infrastructure Development Cess (GIDC). Under GIDC, Pakistan government has dismissed about Rs210 billion bills of big corporations to attract revenue. Certain elements were accusing Hub Power Company of gaining benefit from this deal. Company clarrifed that it is running residual furnace oil, hydel and coal based power plants. So, it does not retain or run any gas-fired power plant. HUBCO said matters related to fuel prices for power plants are dealt under the IPPs (Independent Power Producers) purview. Thus, GIDC's deduction has no impact on its Profit & Loss (P&L). HUBCO is operating four power plants in Pakistan using different fuels. Moreover, it's the only company with four projects under CPEC banner in which three are under construction.
The Hub Power Company Ltd has stated that it does not come under the purview of the Gas Infrastructure Development Cess (GIDC). In a press release, the company said it operates two Residual Furnace Oil based Power Plants, one Hydel Power Plant and has a Coal based Power Plant, which is a joint venture with China Power International Holdings Ltd. As the Company does not own or operate any gas-fired power plant; and therefore, was never subject to the GIDC.
It is pertinent to note that costs related to the fuel component for a Power Plant are pass-through items for IPPs and hence the imposition or the reduction of GIDC does not have any impact on the P&L of such IPPs. Therefore, any assertions made that the Company has received certain benefits from the recent waiver announced by the Federal Government with regards to the Gas Infrastructure Development Cess (GIDC) are not only false but are being made with malafide intentions. The Hub Power Company Limited currently produces over 2920 MW through its four plants spread over Balochistan, Punjab and Azad Jammu & Kashmir.
HUBCO is the only power producer in Pakistan with four projects listed in the CPEC out of which three are under-construction namely Thar Energy Limited (TEL) and Thalnova Power Thar (Pvt.) Ltd. and Sindh Engro Coal Mining Company (SECMC) at Thar Block II. The power generation capacity of the Company will enhance to over 3580MW after completion of the aforementioned power projects.-PR
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