ISLA MABAD - Pakistan Electric Power Company (PEPCO) would release Rs 12 billion in a couple of days to Independent Power Producers (IPPs) to clear the circular debt, the Managing Director (MD) PEPCO, Tahir Basharat Cheema said during a press conference here on Saturday. Out of Rs 180 billion circular debt, Rs 80b were retired in March and the remaining circular debt would be cleared by end June. The MD said that subsidy was being gradually reduced and added that there should be no subsidy because it had created problems like circular debt. He further said that discussions were underway with the business community to introduce staggering of holidays for the industry. He informed that two industrial estates of Lahore had agreed on the staggering of holidays and the talks were underway with the remaining business community. He noted that PEPCO had entered into agreements with the textile and sugar industries to get 600 MW electricity from the captive power plants. He maintained that IPPs were maintaining sufficient furnace oil stock and added that despite financial crunch last year, IPPs had cooperated with the government by continuing power generation to meet the requirements of the country. PEPCO has formed the Revenue Task Force that will monitor the employees performance and efficiency for revenue power generation, he said adding that old meters would be replaced with the new small meters that would be provided to the consumers free of cost. These meters would block the theft of electricity, he added. He said that work on Diamer Bhasha Dam would start during the next year. He said that the contribution of thermal power generation was 70pc against 30pc hydel power generation. In the long-term policy, govt would bring the hydel power generation at 70pc and thermal power generation would be reduced to 30pc. He said that Pakistan had identified hydropower potential of over 54,000 MW and proven coal reserves of 185 billion tons in Thar had power generation potential of 100,00 MW through 536 million tons per year. Pakistan confirmed wind energy potential is more than 346,000 MW. According to a presentation given by MD PEPCO, direct foreign investment (DFI) is expected through participation of Chinese companies in development of solar projects and Government of Pakistan shall provide full facilitation through AEDB. Chinese Banks and financing institutions may finance the commercial projects through debt and equity sharing for commercial solar power projects. Collaboration is expected between Pakistani and Chinese engineering industries for manufacturing of cells in Pakistan. Wing Mapping conducted by National Renewable Energy Laboratory (NREL), USA in collaboration with USAID, has indicated a potential of 346,000 MW through wind resource in Pakistan. The Gharo-Keti Bandar Wind Corridor spreading over 60 km along the coastline of Sindh Province and more than 170 km deep towards the land alone has a potential to generate 50,000 MW of electricity. To promote Chinese equipment Government of China may give export credit to its OEMs. Collaboration in Wind Turbine Manufacturing between Pakistani and Chinese engineering industries is expected for manufacturing wind turbines in Pakistan. According to government incentives, there is Guaranteed Electricity Purchase, Grid provision is the responsibility of the purchaser and protection against political risk is ensured. The other incentives are attractive Tariff (Cost plus 15% ROE), indexed to inflation and exchange rate variation (Rupee/Dollar), Euro/Dollar Parity allowed, Carbon Credits available, No Import Duties on Equipment, Exemption on Income Tax/ Withholding Tax and Sales Tax, Repatriation of Equity along with dividends freely allowed and Permission to issue corporate registered bonds.