ISLAMABAD:
The Senate Standing Committee on Industry and Production on Thursday asked whether the government would purchase power from solar consumers at Rs 9 per unit, while expressing concerns over “potential lobbying by independent power producers (IPPs) )” against solar policy.
The upper house panel met under the chairmanship of Senator Aon Abbas Buppi to discuss solar panel policy and progress in electric vehicle (EV) initiatives.
Officials from the Ministry of Industry and Production briefed the committee on the solar panels, saying they had started working on the solar policy as per the guidelines of the Special Investment Facilitation Council (SIFC). Officials further said they shared the summary with stakeholders and addressed the sales tax issue.
The commission chairman questioned whether the IPPs were lobbying against the solar policy, which ministry officials denied.
The local solar panel manufacturing policy recommends a 10-year framework for sustained local and international investments, exemption from duties and taxes on the importation of installations, machinery and equipment, equal treatment of tax sales and increased customs duties on finished products.
Senator Saifullah Niazi stressed the need for proactive measures to promote local solar manufacturing.
The commission chairman asked who decides the price of solar panels, to which officials responded that it depends on market conditions and imports.
Buppi asked if there was any work planned for local solar manufacturing in the future. Industry ministry officials referred the question to the FBR for response.
The committee chairman suggested to senators that FBR officials be asked to brief the panel on the issue. Senator Saleem Mandviwala said the FBR would not be able to give a “clear stand” on the issue.
The CEO of the Engineering Development Board (EDB) stressed that the aim of the policy was to encourage local solar production, including proposals for tax exemptions and the establishment of an international certification laboratory. The committee was informed that the FBR would include tax exemptions for solar panels in the upcoming Finance Bill.
Senator Mandviwalla asked if local companies would produce solar cells. The EDB CEO responded that local cell production was not feasible but solar panel manufacturing was possible. The committee also deliberated on the draft electric vehicle (EV) policy, which is yet to receive final approval.
The panel was informed that electric vehicle charging stations would be installed at all petrol pumps in Islamabad.
Officials said 40 locations along the highways have been identified for charging stations, with installations already completed on both sides of the Bhera interchange.
The committee was told that 3,000 charging points would be created across the country for electric cars.