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Time of India
18 hours ago
- Business
- Time of India
Solar Projects A Ray Of Hope To Curb Electricity Budgets
Pune: When Park Royale, a housing society with 433 flats in Wakad, first installed a solar project seven years ago, the pilot phase yielded promising results. Encouraged, they scaled up the total capacity to 172.5-kW and today, their annual electricity expenses for common amenities in the complex have dropped from Rs62 lakh to just Rs13.5 lakh — almost a fifth of costs — thanks to the switch to solar. Tired of too many ads? go ad free now This reduced expenditure even includes the Rs7 lakh used for operating their society's sewage treatment plant (STP), which now runs on a green meter (providing subsidized govt charges for power). Society chairman Manoj Shinkar told TOI, "Initially, we had installed a 30-kW solar plant in 2018, and the investment was recovered in just two years as we also received govt subsidy on it. Encouraged by the savings, we expanded the project gradually in four different phases and reached 172.5-kW by 2023." Park Royale is one of the housing societies in Pune and Pimpri Chinchwad that are choosing to significantly cut down on electricity costs by switching to solar power. By installing rooftop solar systems, many societies have managed to power all their common area facilities—lifts, water pumps, and lighting—entirely through solar energy. Members of such societies say the move has led to substantial savings, amounting to lakhs of rupees annually, allowing them to reduce monthly maintenance charges for residents. Shinkar echoed that the benefits get passed on to flat owners. "Earlier, we charged Rs3 per sqft as maintenance. This has reduced to Rs2.5 per sqft—one of the lowest maintenance charges by any housing society in Wakad and nearby areas," he said. The entire solar setup cost the society Rs95 lakh by 2023, and the agency will handle maintenance for the next five years after each installation at no extra cost as per the agreement. Tired of too many ads? go ad free now With money saved on power bills, the society has also invested in other infrastructure upgrades, including a Rs15 lakh waste composting plant. Additionally, all common areas are now equipped with energy-efficient LED lighting to further reduce power consumption. Another such example is the La Melosa Housing Society — also in Wakad — which has 234 flats. The society installed a 76-kW solar system in March this year. Society chairman Jasbir Singh said, "Over the last two months, our common electricity bill dropped from an average of Rs2-Rs2.4 lakh per month to just Rs3,500 per month. The difference is staggering." Singh said the installation agency estimated annual savings of Rs18 lakh, considering that power generation from solar systems usually reduces during the monsoon season and one may need to pay more towards electricity bills during that period."We spent Rs35 lakh on the project after receiving govt subsidy and expect to recover this cost in two years," he added. The society financed the project internally and plans to reduce the monthly maintenance fee once the investment is recovered. "For any housing society, electricity and water are the major expenses covered under maintenance. If we manage these efficiently, the overall cost for residents can be brought down significantly. That's why every society should consider installing solar systems," Singh said. Besides large complexes, many smaller residential establishments are also adopting solar energy, such as the Bhagyashree Apartments in Pune's Kothrud. The 10-flat residential building was recently recognized and felicitated by the Maharashtra State Electricity Distribution Company Limited (MSEDCL) as the first fully solar-powered residential apartment in the entire district. The society had initially installed an 11-kW solar system two years ago to power common amenities. Encouraged by the savings and efficiency, residents decided to extend solar power usage to all individual flats. Accordingly, in Jan this year, they added another 19-kW system, including -1-kW system for four flats, 2-kW for three flats and 3-kW for the remaining three flats, making the entire building solar powered. Mandar Deshmukh, a resident here, said, "Earlier, the monthly electricity bill for my individual flat was around Rs2,000. Since switching to solar, it has dropped to zero." The building now has a total of 30-kW rooftop solar capacity, which meets the entire electricity demand of all 10 flats and common areas, making it a model for sustainable residential living. Solar agencies confirmed that they are getting increased inquiries from housing societies — but added that many hesitate to install it due to shortage of funds. On average, it costs around Rs25 lakh to install a 50-kW solar project. "However, housing societies can also opt for OPEX (operating expense model), under which the third-party vendor owns, installs, operates and maintains the solar system, and the housing society only pays for their consumption, with fixed and reduced rates compared to normal electricity charges charged by MSEDCL," a solar agency operator said, adding that the vendor and societies make an agreement for a fixed period after which the complete set-up is given to the housing society for free. The operator said, "If societies want to fund the project on their own, agencies also help them get a subsidy of Rs18,000 per kW from state govt." There has been a surge in demand from residential properties for solar system installation in the last one-and-a-half years, particularly after govt launched the 'PM Surya Ghar-Muft Bijli Yojana', said SunGet Solar Infra owner Dipak Kotkar. Under this scheme, consumers with individual flats or houses are provided financial assistance of Rs30,000 per kW project (which for society complexes is Rs18,000 per kW). "We had to increase our manpower after this scheme was launched as it has received a very good response. There is a need to simplify the process so that more people can apply for it," Kotkar told TOI. "For instance, the govt online portal keeps getting upgraded, so data of earlier applications is lost and needs to be constantly refilled. Further, there are no dedicated offline govt centres for troubleshooting glitches, only call centres," he elaborated. Confirming the reaction to the scheme, Sunil Kakde, chief engineer of MSEDCL Pune zone, said, "There has been a good response to the PM Surya Ghar-Muft Bijli Yojana from housing societies as well as individual households. Residents are widely utilizing the scheme mainly to power common facilities, such as water pumps and lifts, using solar energy. Govt provides 18,000 per kW subsidy to projects at housing societies up to 500-kW capacity. "
Express Tribune
3 days ago
- Business
- Express Tribune
Taxes on hybrid cars, solar panels being withdrawn
Listen to article The National Assembly Standing Committee on Finance on Tuesday unanimously rejected the proposed 18% sales tax on the import of solar panels, while the government also announced the withdrawal of another controversial measure to increase sales tax on hybrid vehicles, reversing both the anti-environment initiatives. The committee in its meeting, chaired by Pakistan Peoples Party's (PPP) National Assembly member (MNA) and former finance minister Syed Naveed Qamar, also raised questions on the proposed new bill, the Digital Presence Proceeds Act 2025 but did not announce its judgment. The rejection of the 18% sales tax on import of solar panels and its parts, as announced by Qamar, is the first such rejection by the committee after it started discussing the Finance Bill. Unlike the Senate, the decisions of the National Assembly or its standing committee are binding in case of the Finance Bill. The government had estimated Rs20 billion in revenues from the 18% sales tax on the import and supply of photovoltaic cells, whether assembled or not. Since the IMF had not endorsed the proposal, the rejection by the committee will not have any adverse implications for the IMF programme. During the committee meeting, Federal Board of Revenue (FBR) Chairman Rashid Langrial argued that sales tax had already been levied on the local assembly of the solar panels; therefore, the rejection of the import stage tax could put the local industry at a disadvantage. However, he could not give firm figures about the share of the local industry in the total sales but said that a very few percentage was supplied locally. "If the government did not accept our rejection, the National Assembly will veto it," Qamar said. Qamar asked the government to find other ways for incentivising the local industry. Finance Minister Muhammad Aurangzeb said that the era of giving subsidies had ended. On that Qamar reminded him that the government had just announced subsidies in the budget for electric vehicles. In the budget, the government had imposed 1% to 3% car engine levy to raise Rs10 billion for funding the electric vehicles. "It is a cross subsidy on electric vehicles", Aurangzeb said. "It is still a subsidy funded by someone else," retorted Qamar. The government has long been trying to discourage the use of solar panels – a source of cheaper electricity – over the government-sold expensive grid-based power. "No political party in the National Assembly has supported the 18% tax and the government will have to withdraw it," Qamar said. The finance minister acknowledged the feedback. Hybrid cars Meanwhile, the government on Tuesday announced the withdrawal of the proposed increase in the sales tax rate from 12.5% to 18% on hybrid cars of up to 1800 cc. This would result in a loss of Rs7 billion potential revenue. The reduced sales tax rate of 12.5% on the hybrid cars would stay, FBR Chairman Langrial stated. Although, he told the committee, the finance minister had announced it in the budget speech, the tax would not be increased. It is the second time in the past one year when the government announced to increase the sales tax rate on hybrid cars but subsequently withdrew it before the approval of the budget by the National Assembly. Under the automobile policy, the government cannot increase the rate till June 2026. However, the FBR chairman refused to withdraw the proposed increase in the sales tax rate for middle income group's up to 850 cc cars. In the budget, the government has proposed to increase the sales tax rate on 850 cc cars from 12.5% to 18%. Langrial said that if a person can buy a Rs3 million small car, he can also pay 18% sales tax. It seems that after the budget small cars will become expensive but the luxurious SUVs will become cheaper, remarked MNA Usama Mela of the Pakistan Tehreek-e-Insaf (PTI). The committee had a heated discussion on the issue of giving policing powers to the FBR and the fear of its abuse by the taxmen. The entire Finance Bill is like declaring martial law on businesses, remarked PPP MNA Nafisa Shah. However, the chairman FBR took an exception to labelling the bill as a piece of martial law work. "The harsh words like martial law have been used but I want to clarify that I work for the democratic government," Langrial said, before opting to leave the meeting hall. The standing committee also showed its discomfort over giving FBR's authority to the local police to trace the non-tax paid cigarettes and confiscate those. The members observed that this would give another window to the police to extract money from the people. "Poor people smoke to relieve stress but the rich can afford diet coke," Sharmila Faruqi remarked. The committee also questioned the government's new bill, the Digital Presence Proceeds Act. The bill has been introduced to charge 5% tax on the value of online payments made to foreign digital companies like Netflix and Amazon. FBR Member Dr Najeeb Memon said that the quantum of foreign payments was much more than Rs300 billion and the government could easily get Rs15 billion in revenues. He said that the credit card payments to firms like Netflix and Amazon stood at Rs300 billion this year. The size of tax-free sales by Temu was also Rs4 billion. The committee members called for bring the bill as a separate law instead of making it part of the Finance Bill.
Express Tribune
3 days ago
- Business
- Express Tribune
Solar panel, hybrid car tax rejected
An expert said that hybrid vehicles would help Pakistan in reducing oil import bills and save foreign exchange. Photo: File Listen to article A National Assembly panel on Tuesday unanimously rejected the 18% sales tax on solar panel imports, while the government announced it would withdraw another controversial proposal to increase in sales tax on hybrid vehicles, rolling back two controversial budget measures viewed as anti-environment. The National Assembly Standing Committee on Finance also raised questions about the proposed Digital Presence Proceeds Act 2025 but did not issue a final decision. The meeting was chaired by Pakistan People's Party (PPP) MNA and former finance minister Syed Naveed Qamar. "The committee unanimously rejects the 18% sales tax on import of solar panels and its parts," Qamar said after detailed discussion. Unlike the Senate, the National Assembly and its standing committee's decisions are binding in the case of the Finance Bill. This was the committee's first formal rejection since it began reviewing the Finance Bill. The government had projected Rs20 billion in revenue from the 18% sales tax on the import and supply of photovoltaic cells, whether assembled or not. The International Monetary Fund (IMF) had not endorsed the tax, and its rejection by the committee will not affect the IMF programme. FBR Chairman Rashid Langrial said a sales tax already applied to locally assembled solar panels, and exempting imports could hurt the domestic industry. However, he failed to provide reliable data on local production's share in total sales and admitted local supply was minimal. "If the government doesn't accept our rejection, the National Assembly will veto it," said Qamar, urging alternative means to support local producers. Finance Minister Muhammad Aurangzeb said the era of subsidies had ended, to which Qamar responded that the government had just announced subsidies for electric vehicles in the same budget. "It is a cross-subsidy on electric vehicles," said Aurangzeb. "It is still a subsidy funded by someone else," replied Qamar. The budget introduced a 1% to 3% engine levy to raise Rs10 billion for electric vehicle subsidies. The government has long sought to reduce reliance on solar energy, which provides cheaper electricity than costly grid power. "No party in the National Assembly supports the 18% solar tax. The government must withdraw it," Qamar said. The finance minister acknowledged the feedback. Hybrid tax withdrawn The government also announced it would withdraw the proposed increase in sales tax on hybrid cars up to 1800cc, maintaining the current 12.5% rate. The reversal will cost an estimated Rs7 billion in potential revenue. "The 12.5% sales tax on hybrid cars will remain," said the FBR chairman. He said that although the tax hike had been announced in the budget speech, it would not be increased. This marks the second time in a year that the government proposed raising the tax on hybrid vehicles, only to backtrack before the budget's approval by the National Assembly. Under the current auto policy, the tax rate on hybrid cars cannot be increased before June 2026. However, Langrial said the government would proceed with raising the sales tax on small cars up to 850cc, often purchased by middle-income buyers. The government has proposed a sales tax rate increase from 12.5% to 18%. Langrial argued that buyers of Rs3 million cars could afford to pay 18% sales taxes. "It seems small cars will become more expensive while luxury SUVs get cheaper," remarked Pakistan Tehreek-e-Insaf (PTI) MNA Usama Mela. FBR powers spark controversy The committee also held a heated debate over proposals to expand the Federal Board of Revenue's policing powers, warning of potential abuse. "The Finance Bill is like declaring martial law on businesses," said PPP MNA Nafisa Shah. Langrial objected to the comparison. "Harsh words like martial law have been used, but I want to clarify that I work for a democratic government," he said before leaving the meeting room. Committee members also opposed giving police the authority to trace and seize untaxed cigarettes under FBR directives. They warned the measure could open new avenues for bribery. "Poor people smoke to relieve stress, but the rich can afford diet coke," quipped MNA Sharmila Faruqi. Digital tax plan questioned The committee also questioned the Digital Presence Proceeds Act, a new bill aimed at taxing online payments to foreign digital companies like Netflix and Amazon. The bill proposes a 5% tax on the value of such payments. FBR Member Dr Najeeb Memon said annual foreign payments exceeded Rs300 billion, with potential to raise Rs15 billion in tax revenue. He said credit card payments to Netflix and Amazon alone hit Rs300 billion this year, while Chinese e-commerce platform Temu made Rs4 billion in tax-free sales. Committee members urged the government to introduce the digital tax measure as a separate law, not as part of the Finance Bill.
Express Tribune
12-06-2025
- Business
- Express Tribune
Bread makers push for rate hike
The Pakistan Naanbai Association and the tandoor bodies of the twin cities Rawalpindi and Islamabad have issued a one-week notice to the government and Deputy Commissioners regarding the steep increase in prices of flour, fine flour, and commercial gas cylinders, demanding a rise in the prices of bread, naan, and paratha. A joint convention of naanbai bodies from Islamabad and all districts of Punjab has been called in Rawalpindi after Eidul Azha. During this convention, a decision will be made either to officially announce the new prices of bread and naan or to launch a complete strike and protest. Shafeeq Abbasi, the central president of the association, says a sack of red flour costs Rs6,000 from the mills to the tandoor, while fine flour is being sold at Rs7,200 per sack. Within a week, the price of regular flour has increased by Rs500 and fine flour by Rs600 - a trend that continues to rise, he adds. "Despite the extreme heat, no tandoor has access to Sui gas. Every tandoor operator is forced to buy commercial gas cylinders for Rs14,000 each to operate. Sui gas and LNG supplies are completely shut off. Electricity prices have also increased, while rental costs for tandoors and labour wages have gone up." Additionally, the prices of ghee, oil, and dry milk have surged, he says and adds under these conditions it is impossible for them to sell affordable bread. Abbasi demanded the government fix new, increased prices for bread; otherwise, after Eid, the All Punjab Tandoor Owners Convention will decide on strict measures.
Express Tribune
10-06-2025
- Business
- Express Tribune
Eid cattle sales now a middlemen's game
The sale of sacrificial animals has now become a fully commercial and highly profitable business, with the profits increasingly going to middlemen. Both the original owners of the animals — typically farmers and herders — and the end buyers incur losses. As a result, the demand for sacrificial animals continues to decline. According to contractors and livestock traders in Rawalpindi, this year saw a record 30% to 34% drop in the sale of sacrificial animals in the city. If a proper mechanism for the sale and purchase of sacrificial animals is not developed within the next two years, this decline could exceed 50%. A survey shows that immediately after Eidul Fitr, middlemen begin purchasing animals directly from villages through local agents. They pay in advance and transport the animals to their own farms, where they keep them for two months, set their own prices, and earn significant profits. When the moon of Eidul Azha is sighted, these animals are brought to the livestock markets. These middlemen buy animals at cheap rates directly from farmers and livestock owners, who barely make any profit. Meanwhile, consumers are forced to purchase the same animals at much higher prices. In addition, livestock markets have been fully commercialised. The market contractors, who often have no direct involvement with animals, win multimillion-rupee tenders from the municipal or district administration. They then rent out space in the market to livestock traders at rates ranging from Rs500,000 to Rs1 million per kanal for just 10 days. Other costs, such as electricity, water tankers, animal feed, tents for shade, and fans for ventilation, all add to the overall expense. An amount of Rs7,000 entry fee is also charged for a large animal and Rs4,000 for a smaller one. Loading and unloading charges are additional, and all of these expenses ultimately fall on the buyer. Previously, the original animal owners would sell their livestock directly in streets and local markets, with no market fees or middlemen involved. Now, however, what was once a religious tradition has been turned into a profit-driven industry by a growing mafia. Raja Khan, a contractor on High Court Road, explained that he rented one kanal of land for Rs800,000 for 10 days. Daily, he spent Rs3,500 on a water tanker, Rs10,000-15,000 on animal feed, and Rs2,000 on food for his three workers, who also bathed the animals to keep them cool in the summer heat. His electricity bill alone for 10 days was Rs100,000. Khan added even government and police officials didn't pay full price for animals. "Under such conditions, how can we sell animals at cheaper rates?" he said. "Every year, animal prices increase by Rs40,000 to Rs80,000. Within the next three to five years, sales may drop by 70%, and prices could rise by 50% to 70%." Contractor Irshad Abbasi says if market tender fees are abolished, animal prices could drop by 30% to 40% in a single day. He held the middlemen and administration responsible for the rising prices, adding: "When livestock markets are auctioned for Rs150 million to Rs180m, how can animals be sold cheaply?" This year, even on the eve of Eid, sales remained sluggish. By 9pm on Chand Raat, the market had essentially collapsed. Prices were reduced by up to 30%, but most genuine buyers had already left. As a result, many animals went unsold. Some were purchased by butchers at the last moment. Those who came after 9pm were able to buy good animals at 30% to 40% lower prices. Another major reason for the decline in sacrificial activity is the Rs 20,000 slaughtering fee for cows and bulls.
