OBJECTIVES:

In the face of rising energy crisis and escalating cost of fossil fuels, alternate energy resources are being explored as a national objective. Being inherently deficient in fossil fuels& in view of fast depleting natural gas reserves, Pakistan has to rely heavily on expensive fuel imports to support its thermal generation plans. But with the escalating cost of imported fuels & international concern on carbon emission, it has become ever more necessary to explore alternate sources of energy within the country to reduce dependence on imported fuel & ensure energy supply to maintain industrial & socio-economic growth.

As a part of its energy security plan, the Government of Pakistan lays greater emphasis on tapping the endogenously available coal, wind, hydro & solar energy resources to raise their share in energy generation to a significant level. Since the State of AJK is blessed with abundant hy-dropower potential in close proximity to major industrial & urban load centers, proposals & schemes for its development area in the national interest & need to be supported. Energy generation from indigenous hy-dropower resources would significantly contribute towards saving imports of fossils fuels for the same purpose.
 

MISSION:

To plan and to undertake development of identified hydro potential.
 

POLICIES:

The outline of the Policy to promote the development of hy-dropower projects in AJK covers the following aspects.

• Award of raw sites on first come first served basis to Interested Investors who establish their financial soundness to meet the equity component of investment.
• Award of Solicited Sites on the basis of competitive bidding to Investors/interested Investors on reimbursement of feasibility study costs.
• Leasing of State owned land on concessional rates required for project development to Investors/developers without provision for escalation of lease rates.
• Support in acquisition/leasing/purchase of private owned land through revenue department.
• Support in setting up regional receipt/Dispatch grids for optimal utilization of capacity.
• Generous package for BOT implementation including 5 years grace period for extension of operation.
• Generous tax/levies incentives to promote cottage industrial/agricultural units running on hy-dropower projects on the concept of captive generation.

The Gov AJK shall extend all possible support & assistance to the prospective potential Investors/project developers, who face difficulties in framing their proposals or obtaining necessary consents from the departments concerned.