The Cabinet’s Economic Coordination Committee (ECC) has approved a framework agreement for LNG imports and funding of Rs157.734 million for the Heavy Electrical Complex (HEC) between Pakistan LNG Limited (PLL) and the State Oil Company of Azerbaijan Republic (SOCAR).
The ECC also granted Rs404.769 million to satisfy the 6-Aviation Squadron’s maintenance needs. According to top officials, the Cabinet Division’s Six Aviation Squadron controls a fleet of helicopters. The squadron was tasked with carrying out relief and rescue operations, as well as missions involving VVIPs and foreign dignitaries.
Repairing and maintaining helicopters is a frequent component of keeping the fleet functioning. 6 Aviation Squadron wants approximately Rs550 million for this. The government had allotted Rs111 million in the annual budget for the maintenance of the helicopter fleet, which was used after being placed with NBP for payment via LC. The ECC has now authorized an Rs404.769 million Technical Supplementary Grant for helicopter fleet upkeep.
According to another statement for the supply of cash for the payment of salaries to HEC personnel, Heavy Electrical Complex is a power transformer manufacturing company that was offered for sale by the Privatisation Commission (PC) last year after a competitive bidding process.
All additional land other than the production premises is treated as an ‘Excluded Asset’ under the Share Purchase Agreement (SPA). As a result, 30.8 canals in Taxila had to be completely separated from HEC prior to the transfer of shares to the prospective buyer.
To protect the federal government’s interests, the ECC resolved to transfer the HEC land to SPD. The SPD has been delaying the money that was supposed to be made as a charge for the modification of HEC land. Given the standoff, the meeting determined that SPD should mutate the land within a week, or that if SPD delays, MoIP can mutate the HEC’s land in favor of SEC as an intermediate measure. It was also determined that the MoIP should submit a report to ECC in order to secure the necessary money for the transfer of HEC land to SEC.
According to an official notification, Federal Minister for Finance and Revenue Senator Mohammad Ishaq Dar presided over a meeting of the Cabinet’s Economic Coordination Committee (ECC). The ECC asked the Ministry of Petroleum to determine LNG demand three months in advance on a rolling basis. The ECC also discussed and approved Rs157.734 million in additional funds in favor of the Ministry of Industries and Production for the payment of Heavy Electrical Complex (HEC) employees’ salaries, a markup to Bank of Khyber, and operating/running expenses, subject to Finance Division reconciliation.
