Pakistan : New Incentive Package For Ginning Industry

A new incentive package for the cotton ginning industry has been announced by the the Water and Power Development Authority (WAPDA). Industries that have been disconnected for more than two years and up to five years will have their connections restored if they pay 50 percent of total arrears as down payment, said WAPDA.

The balance arrears can then be paid in three installments. Under the 1999 reconnection policy, minimum/fixed charges recoverable are exempt for those consumers make the 50 percent payment for reconnection before December 31, 2003. Exemption will also be admissible to those consumers who owe nothing to WAPDA.

Disconnected industrial consumers applying for reconnection within five years of the disconnection date will be relieved the cost they had paid less depreciation. They will be charged only the differential for reconnection. Depreciation value will be calculated on the basis of ten years useful life of equipment.

Industrial consumers seeking reconnection within five years of the disconnection date are allowed to pay a 50 percent additional security deposit as down payment before reconnection and the rest in installments payable up to December 31, 2003, subject to the condition that the sanctioned load remains unchanged.