Approval to pay Rs. 403 billion to private power plants

Finance Ministry sources said that the IPPs will be paid in two installments

ISLAMABAD: The Economic Co-ordination Committee (ECC) of the Cabinet has approved agreements with IPPs and payment of Rs 403 billion to IPPs.

The meeting of the Economic Coordination Committee of the Cabinet was held under the chairmanship of Finance Minister Dr. Abdul Hafeez Sheikh. During the meeting, the Secretary Ministry of Energy apprised the private power companies of the details of the report of the implementation committee set up on the mechanism of payment of dues.

The Federal Secretary, Ministry of Energy also briefed the participants about the details of MoUs signed by the Implementation Committee for the payment of dues of private power companies.

The ECC, after a detailed review, approved in principle the agreements with IPPs. The ECC has approved the payment of dues to 46 IPPs till November 30, 2020. However, final approval of payments to IPPs will be sought from the Federal Cabinet.

The ECC has also approved a supplementary grant of Rs. 35 crore to the FBR. Funds will be paid to the FBR for installing video cameras in sugar mills.

A meeting of the Cabinet Energy Committee was also held. Sources said that the Cabinet Committee on Energy and the ECC had approved a payment of Rs 403 billion to the IPPs, which would be made in two installments. It has been decided to pay Rs 161 billion to private power plants immediately. The remaining amount will be paid in the next six months. Agreements with IPPs will save the government Rs 836 billion in 15 years.

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