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Uncertainty over sale of power to Pakistan
Ashok Tuteja/TNS

New Delhi, July 21
The government is yet to make up its mind on whether to sell power to Pakistan, given the heavy economic and political cost involved in the proposal.

Official sources said the issue was being discussed in different ministries connected with the issue, based on the recommendations made by an official delegation which had visited the neighbouring country recently to study the feasibility of the project.

The delegation is understood to have presented a picture that does not seem inspiring for the two countries to deal in the sale of about 500 MW of electricity to Pakistan, which is in the grip of a crippling power crisis that has affected its economy badly.

The Indian team has observed that a lot of work needed to be done on both sides before an arrangement to sell power to Pakistan on commercial rates could be put in place. The Pakistan Government itself would have to build a massive infrastructure, estimated to cost about Rs 700 crore, for receiving stations, high-voltage transmission line and a dedicated grid to receive power.

The Indian side will also have to spend hugely to transmit electricity from Patti grid in Punjab to Wagah border. On top of it, it will take India at least three to four years to set up the technical pre-requisites before the exports of electricity to Pakistan could actually start.

The cost of electricity for Pakistan would be so high that it would be impractical for Islamabad to consider the purchase of power on a long-term basis, making the infrastructure more or less redundant. In any case, trade between the two neighbours invariably depends on the state of bilateral relationship.

Critics in India are already questioning the government’s proposal to sell electricity to Pakistan, pointing out that Islamabad has still not fulfilled its commitment to grant the MFN status to India and also continues to deny New Delhi transit access to Afghanistan. Also, there is a feeling that India should first address its own power woes before considering exporting it to any neighbouring country.

The Punjab Government, it is learnt, is pitching strongly for selling electricity to Pakistan to strengthen trade and economic links with the neighbouring country. It was Deputy Chief Minister Sukhbir Singh Badal who had first discussed the idea of Punjab selling power to Pakistan during his visit there in November 2012.

Prime Minister Manmohan Singh and his Pakistani counterpart Nawaz Sharif are also said to be very keen on enhancing economic cooperation, including in the power sector. They are expected to discuss the issue further when they meet in New York on the sidelines of the UN General Assembly in September.

Political, economic factors

  • Pakistan will have to build a massive infrastructure, estimated to cost about Rs 700 crore, for receiving stations, high-voltage transmission line and a dedicated grid to receive power
  • The cost of electricity for Pakistan would be so high that it would be impractical for Islamabad to consider the purchase of power on a long-term basis, making the infrastructure more or less redundant
  • Critics in India are already questioning the government’s proposal saying that Islamabad has still not fulfilled its commitment to grant the MFN status to India and also continues to deny New Delhi transit access to Afghanistan

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