Rs12.4b disbursed to run tube wells on solar power

The federal government has sanctioned Rs14 billion for running agricultural tube wells on solar power in Balochistan.

According to the daily situation report submitted by the Quetta Electric Supply Company (Qesco), the government of Balochistan had disbursed Rs12.4 billion till March 1, 2025.

Qesco has 50 active agricultural-dominated electricity feeders in Balochistan, where its total pending receivables stand at Rs564 billion.

These matters were highlighted during a meeting of the steering committee on the conversion of agricultural tube wells into solar power, chaired by Deputy Prime Minister Muhammad Ishaq Dar.

The meeting was attended by the chief minister of Balochistan, federal minister for power, additional secretary finance, secretary of the Power Division, chief secretary of Balochistan and secretary of the Energy Department, Balochistan.

Participants of the meeting took stock of the progress made on the government’s initiative to convert agricultural tube wells into solar energy in Balochistan.

It was informed that a sanction order for Rs14 billion was issued by the federal government to the administration of Balochistan on February 4, 2025. By March 1, according to the daily situation report of Qesco, the government of Balochistan had disbursed Rs12.4 billion. A total of 4,539 connections, 2,378 poles and allied materials, and 2,626 transformers were retrieved, resulting in a load reduction of 67.4 megawatts from the tube wells, the meeting was apprised.

It was pointed out that there were 27,437 subsidised agricultural tube wells and 10,263 illegal tube wells in Balochistan. Qesco has 50 active agri-dominated feeders, with pending receivables of Rs564 billion.

As per the initiative, a compensation of Rs2 million is being provided for each tube well subject to disconnection. This cost will be shared by the federal government and the Balochistan administration with a ratio of 70:30.

It was highlighted that a third-party verification of conversion into solar energy would be conducted. The chair showed concern over slow implementation and urged the government of Balochistan and Qesco to fast-track the project.

For a long time, the federal government has been facing the problem of circular debt accumulation in the power sector that has choked the entire energy chain.

Balochistan has also contributed to the circular debt because of failure of the agriculture sector to pay its bills. To cope with the challenge of fast rising energy sector debt, the federal government is shifting agricultural tube wells to solar energy in Balochistan.