STAFF REPORT KHI: The State Bank of Pakistan (SBP) is encouraging the financing of renewable energy power plant projects in the country following the policy of the government to bridge the supply and demand gap of electricity in the country.

In this regard, the central bank has extended the validity period of Scheme for Financing Power Plants Using Renewable Energy for a further period of two years – June, 2014, says a press release issued here last week.

There are lots of energy projects planned to kick off their electricity generation through wind, solar and plantations aimed at producing low cost electricity in the country, which crippled badly by its shortfall.

The relaxation will help local and foreign investors to set up their production plants and tap the lucrative market in different renewable ways of power production.

Its validity was due to expire on June 30, 2012.

Now the financing facilities under this scheme will be available for Letter of Credits (LCs) established for import/purchase of new plant, machinery and equipment upto June 30, 2014.