KP govt sets precondition for Pesco takeover.

PESHAWAR -- The Khyber Pakhtunkhwa caretaker government has set the precondition of the handover of all federally-owned hydropower stations in the province for the takeover of the Peshawar Electric Supply Company.

Earlier this month, Prime Minister Shahbaz Sharif formed a 13 members committee to look into the matter of the handover of power distribution companies (Discos) to provinces.

The committee is headed by the defence minister.

Sources told Dawn that though other provinces had lapped up the idea of the provincial ownership of Discos, the KP government had adopted a circumspect view of the federal government's offer.

Seeks control of centre-owned hydropower units in province

They said since the Pesco had huge line losses, the Disco takeover would further burden the cash-starved province.

An official said requesting anonymity that KP had conveyed to the centre that in light of the poor financial and administrative conditions of Discos, the federal government had proposed to shift their financial and administrative responsibilities to the provinces - a move that would shift Pesco's burden to the KP government.

He said currently, Pesco faced a huge shortfall of Rs200 billion per annum along with Rs30 billion per annum in receivables.

'At present, the Pesco enjoys a uniform national tariff due to tariff differential subsidy, which can be at risk if the existing structure of the power sector is altered. In addition, the administrative structure of the KP government is under severe stress due to the current law and order situation and militancy together with the low economic and social indicators,' he said.

The official said that it won't be possible for the province to take over Pesco.

He, however, said such a proposal could be considered if power generation was handed over to the province along with the income generated by power production.

'This will entail the handing over of all federally-owned hydropower stations to the province,' he said.

The official said the provincial government had asked the federal government to place the report of the...