K Electric got approval to pay dividend

K Electric got approval to pay dividend from finance ministry

Finance Minister, Ishaq Dar here on Tuesday met the 4-member delegation of the K-Electric (formerly KESC) which was led by Mr. Tabish Gauhar, Chairman. The Minister was briefed on the occasion about KE’s extensive USD 2 billion – 3 year Investment plan  envisaging expansion in power generation, transmission and distribution businesses.

The delegation apprised the Minister that KE was taking this initiative in the energy sector in line with the present government’s resolve to end energy shortage in the country. Unfolding key features of the plan, Tabish Gauhar said that USD 1 billion is earmarked for construction of a new 660 MW Coal-fired power plant. Its commissioning is expected for 2018, the Minister was informed. Similarly, USD 400 million shall be spent for conversion of 400 MW of existing “furnace oil” capacity into coal-fired plants. This plan is expected to be completed by June 2017. Another USD 100 million are to be incurred for conversion of 2 existing fully operational open cycle plants (220 MW and 180 MW GE JB) to combined cycle. Distribution plans include, in first phase, USD 270 million for 1,000 MVA transmission enhancement and rehabilitation project.

Ishaq Dar was also apprised that after years of incurring losses, the KE had earned profits and had plans for distribution of dividend of up to 15% to minority shareholders. This is the first dividend to KE shareholders after 20 years, the delegation apprised the Minister.

The delegation expressed the confidence that with the appointment of Mr. Tariq Sadozai, as Chairman NEPRA, Power Sector challenges will be addressed with a professional finesse. The delegation sought the Minister’s attention for resolution of various KE issues with NEPRA.

Finance Minister, Ishaq Dar appreciated KE’s initiative in power generation, transmission and distribution sector. He said in view of the energy shortage, such an initiative was much required and the government fully supported this programme. He assured the delegation all possible support on resolving various issues faced by the KE.

Finance Secretary, Dr. Waqar Masood, Advisor Finance Division, Rana Assad Amin,  Additional Secretary, Azra Mujtaba, Additional Secretary, Tariq Pasha, Additional Secretary(EF) Shahid Mehmood and other senior officials attended the meeting.