KARACHI (July 24 2009): Business leaders have asked the government to put into operation shutdown plants of IPPs such as: Southern Electric, Japan Energy and Gul Ahmad Power, to obtain 390mw and also purchase 2000mw of electricity from captive power units installed in factories which are furnace oil based. Discourage rental power IPPs, impose a ban on fresh installation of thermal units and instead encourage hydel power. In a meeting with Prime Minister Syed Yousuf Raza Gilani, in Islamabad, on Tuesday, the delegation comprising of former Commerce Minister and Chairman Pakistan Business Council Razzak Dawood; Chairman MCB and Nishat Group Mian Muhammad Mansha; and Chairman Kohinoor Industries Tariq Saeed Saigol placed before the ministerial committee short, medium and long-term measures to tackle the energy crisis. These businessmen were asked to come up with solutions by President Asif Ali Zardari at a meeting held in the Presidency a day earlier. Among the immediate measures suggested was: (A) To make all existing IPPs fully operational to maximise generation input; (B) It is estimated that around 2000 mw can be plugged into the national grid from captive power plants installed in textile, cement and sugar mills etc. And, also allow power sharing directly between industries after payment of wheeling charges to the Discos. The committee has asked for a review of the furnace oil price and equating with natural gas on calorific value basis; (C) Evolving a clear cut policy on loadshedding of power and natural gas keeping in view economic consideration; and avoid cross-subsidisation particularly in case of CNG and LPG. Closure of CNG stations in the winter months has been proposed along with subsidisation of imported solar power equipment, as well as concessional financing for investment in energy obtained from waste heat, municipal waste and promoting other saving schemes. Immediate import of LPG at the two import points in Karachi was advocated and the need to make arrangement for LNG imports was also emphasised. The following issues were listed at the meeting with a view to overcoming the energy crisis: "SHORT TERM/IMMEDIATE MEASURES: 1. Put into operation all IPPs not producing power, viz Southern, Japan Energy, Gul Ahmed Power etc. 2. Review HFO pricing formula, equate with gas and bring pricing under OGRA supervision. 3. Put into operation all captive capacity based on HFO, reportedly some 2000 MW. 4. Evolve clear cut policy on loadshedding of power and natural gas keeping in view economic considerations. 5. Apportion pain with clear cut policy, engage public, disseminate information through electronic media, organise seminars and government functionaries should avoid making contradictory statements. 6. Visit afresh pricing formulae for power and gas, eliminate/reduce cross subsidisation, particularly in case of CNG and LPG. 7. Review pricing basis of LPG, allow free of duty imports of LPG. 8. Close down CNG stations during winter months. 9. Discourage rental power IPPs, ban fresh capacity based on HFO, encourage hydel generation by offering attractive tariff. 10. Promote solar power to villages by subsidising imported equipment. 11. Review distribution policy for small producers and wheeling charges. 12. Provide concessional financing to investment in energy from waste heat, municipal waste and other energy saving schemes. MEDIUM TERM MEASURES: 1. Expedite import of LNG. 2. Expedite and resolve issues relating to IPI gas pipeline, encourage public debate to resolve contentious issues relating thereto. 3. Improve gas output by engaging industry giants, BP had offered on performance bonus basis. 4. Offer setting up of coal based power station to group of prominent businessmen on private public partnership basis. 5. Expedite Tarbela 4 Extension on same basis. 6. Resolve KESC fiasco at early date. 7. Replace inefficient units at Guddu, Faisalabad, Korangi etc. 8. Encourage infrastructure investment by private sector in transmission projects on BOT, BOO basis. LONG TERM MEASURES: 1. Bhasha will take too long, feasibility is suspect, Kalabagh Dam project has to he revisited in national interest. 2. In view of Pakistan being a front line state against terror, the west must be engaged to allow setting up of nuclear power capacity. 3. Efforts at producing energy from alternate, sustainable sources, wind and solar has been too slow. The reasons for failure must be ascertained and corrective measures adopted. Main issue is tardy approach to tariff fixation by NEPRA, others."