Wednesday, August 24, 2011

GENCOs to be leased to private sector on contract

The Economic Coordination Committee (ECC) of the federal Cabinet has  decided to give power generation companies (GENCOs) on contract to private sector for a period of 10 years in order to increase their efficiency and generate 1,243 MW more electricity.

The decision should have been taken long long ago but any how it should now be implemented immediately. It is quite clear by studies that a power company or any company being run by govt if compared with the one run by private sector with same infrastructure  and resources have been found very inefficient and resources are being wasted. I am surprised why this step was not taken long before as it has been years of heavy load shedding. 

Power shortage is currently more than 6000 MW and hopefully this step if properly implemented to help curb the issue to some extent only. Any how it is welcome but govt has to do a lot more to eliminate load shedding.


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