Thursday, February 22, 2024

Government offers Rs450b to IPPS to clear round obligation.

ISLAMABAD: The government has offered a bundle to the autonomous force makers (IPPs) in an offer to clear Rs450 billion round obligation, which has tormented the whole energy chain.

The roundabout obligation in the force area remained at Rs2.3 trillion by end June 2020 against Rs1.6 trillion during a similar period in 2019. The roundabout obligation in the oil and gas area remains at Rs1.6 trillion.

The IPPs are additionally confronting round obligation which late receivables had expanded to around Rs700 billion.

As of end of October 2020, the past due receivables of 47 IPPs remained at around Rs451 billion, an industry official stated, adding that Minister for Finance Dr Abdul Hafeez Shaikh has offered a bundle to clear this risk. He said the IPPs are assessing the public authority’s offer.

As per the authority, Dr Shaikh made this proposal to the agents of the IPPs at a new gathering. During the gathering, the pastor offered to free Rs450billion from those IPPs which marked an update of comprehension (MOU) with the public authority to amend power buy arrangement.

Under a modified arrangement, the public authority needs to connect indexation with rupee rather than dollar. It would likewise end limit installments that have put multibillion rupees trouble on the shoppers.

Dr Shaikh told the IPPs that the public authority will pay Rs450 billion to them to determine roundabout obligation halfway. Notwithstanding, this installment will be delivered in three portions.

33% measure of every portion will be as money while two third will be looking like the Pakistan Investment Bonds (PIBs) at a drifting rate.

The public authority will pay the second portion in June 2021 and the last Installment in December 2021. It will free the all out exceptional sum from the IPPs in one year and one month time.

The agents of the IPPs and Minister for Finance Dr Shaikh will hold another gathering one month from now for conclusion of the changes to the Power Purchase Agreements (PPAs) in accordance with the MoUs the different sides endorsed in August 2020.

The public authority is additionally attempting to determine the round obligation issue in oil and gas areas.

The Economic Coordination Committee (ECC) of the bureau had framed a board that had reflected various alternatives to free obligation from oil and gas organizations like the Oil and Gas Development Company Limited (OGDCL) and the Pakistan State Oil (PSO).

The OGDCL is to get Rs400 billion from treatment facilities, gas utilities and force plant because of raw petroleum and gas supplies. The PSO is to get over Rs300 billion from various gatherings. The force area is a significant defaulter of the PSO.

The force area was not satisfying obligations to the PSO because of fuel supply because of non-installment of contribution to the IPPs. Subsequent to clearing the obligation, the IPPs would likewise make installments ahead to fuel providers.

The ECC had additionally recommended that the PSO should be given shareholdings in force plants like Nandipur Power Project to clear its obligation. Another alternative was that PSO offers should be moved to Mari Petroleum and the OGDCL to clear round obligation.

Related Articles

Latest Articles