The All Pakistan Textile Mills Association (APTMA) has signaled interest in acquiring between 25 and 50 megawatts of electricity from the Punjab government in the forthcoming power auction, aiming for cheaper energy for textile producers.
In a letter dated October 14 addressed to Punjab Power Development Board Managing Director Sania Awais, APTMA stated its members wish to explore business-to-business or government-to-business deals to obtain power at competitive, sustainable tariffs.
The provincial government is weighing the option to act as a power generator in the first 400 MW auction under the Competitive Trading Bilateral Contract Market (CTBCM) framework.
APTMA noted that high industrial electricity rates in the province have eroded the textile sector's competitiveness, leading to plant closures and deindustrialisation. It added that the proposed market structure could foster competition, boost efficiency and give industries access to reasonably priced power.
Preliminary signals suggest demand from interested members may fall between 25 MW and 50 MW, with the possibility of growth depending on commercial viability, tariff design and supply terms.
The association also requested dialogue with the Punjab Power Development Board to learn about planned generation projects and to consider private-sector involvement, including potential investments by its members.
APTMA clarified that while some members might assess the opportunities, any investment or participation choices will be made individually, based on each company's technical, financial and commercial evaluations.
The body expressed eagerness to collaborate with the provincial government and the power board on commercially sound solutions that lower industrial energy costs, restore competitiveness and support the expansion of Punjab's textile industry and exports.
