IPPs to be paid Rs250 bn by June 30 as per deal

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ISLAMABAD: In a major development, a deal has been struck between Finance Minister Mr Ishaq Dar and 28 independent power plants (IPPs) under which the government is to ensure payment of Rs250 billion in arrears to the IPPs and will in return get more than 1,500MWs of power before the advent of Ramazan.


Federal Minister for Finance Senator Mohammad Ishaq Dar, in his budget speech on June 12, had announced that the entire circular debt amounting to Rs503 billion would be cleared within 60 days.


In pursuance of this announcement, the press release issued by the government on Friday says: “The federal minister for finance invited the representatives of IPPs to discuss the issue at length with him. The delegation of 28 IPPs, led by Abdullah Yousaf, chairman of IPPs advisory council, called on Federal Minister for Finance Senator Mohammad Ishaq Dar.


“The finance minister informed the delegation that the present democratic government, under the visionary and sincere leadership of Mian Mohammad Nawaz Sharif, was very much concerned about the sufferings of the masses due to power shortage. As per the directions of the prime minister, the government is determined to provide relief to the masses by minimising loadshedding.


“With the Holy month of Ramazan approaching in almost three weeks, the urgency of providing relief to the masses has increased. As short-term measure to reduce severity of outages, the government wants to pay off the entire circular debt in the shortest-possible time. As announced earlier, the government will clear the circular debt within sixty days.


“Abdullah Yousaf said that the enthusiasm of the present government to overcome the longstanding circular debt issue to reduce power shortages in the country was indeed encouraging. The IPPs are conscious of the problems and sufferings of the people in the country and will utilise best of energies to minimise power shortage.


“The IPPs on the occasion committed to produce an additional 1,300 to 1,500 MWs of electricity before the holy month of Ramazan, which will reduce power shortage considerably. “The minister has constituted a sub-committee to work in detail to solve all outstanding issues regarding circular debt. “The committee will report back within a week.”

Courtesy:  The News

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