ISLAMABAD:
The Senate Standing Committee on Industries and Production on Thursday asked whether the government would buy electricity from solar consumers at Rs 9 per unit, while expressing concern over “potential lobbying by Independent Power Producers (IPP)” against the solar policy.
The upper house panel met under the chairmanship of Senator Aon Abbas Buppi to discuss the solar panel policy and the progress of electric vehicle (EV) initiatives.
Officials from the Ministry of Industry and Production briefed the committee about the solar panels and said they have started working on the solar policy as per the directives of the Special Investment Facilitation Council (SIFC). Officials further said they shared the summary with stakeholders and addressed the sales tax issue.
The committee 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 investment, exemption from duties and taxes on import of plants, machinery and equipment, equal treatment of sales tax and higher tariffs on products finished.
Senator Saifullah Niazi highlighted the need to take proactive measures to promote local solar manufacturing.
The committee chairman asked who decided the price of solar panels, to which officials responded that it depended on market conditions and imports.
Buppi asked if any work is planned for local solar manufacturing in the future. Industry Ministry officials referred the question to the FBR for a response.
The committee chairman suggested to the senators that FBR officials be invited to brief the panel on the matter. Senator Saleem Mandviwala said FBR will not be able to give a “clear stand” on the issue.
The director general of the Engineering Development Board (EDB) highlighted that the objective 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 FBR will 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 producing cells locally was not feasible, but manufacturing solar panels was. 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 highways had been identified for charging stations, with facilities already completed on both sides of the Bhera interchange.
The commission was informed that 3,000 charging stations for electric cars would be established across the country.
