The Ministry of Energy is likely to get a supplementary grant of Rs. 303 billion from the government for the payment of power sector debt including Rs. 55 billion it owes to China Power Hub Generation Company (CPHGC).
In next two months, it is expected that the Finance Ministry will release a supplementary grant of Rs. 303 billion to clear some of the power sector dues, official source told the scribe.
So far during the current financial year, the government has released around Rs. 330 billion of the allocated amount of power sector subsidies to the power division, the source said.
In the last two months (May and June) of the current fiscal year, another amount of Rs. 300 billion as supplementary grant is expected, the source added.
It is worth mentioning here that CPHGC had recently asked the Power Division for the partial clearance of its dues. The company had asked for the payment of Rs. 31 billion for coal purchase and debt repayment.
The company had warned that incase no payment was made, it will not be able to continue its operations beyond mid-May.
However, the source claimed that the power division will clear around Rs. 55 billion dues it owed to the company within next two months depending upon the release of the supplementary grant.
CPHGC’s Coal Fired Power Plant, located at Hub, Baluchistan, was developed under the China Pakistan Economic Corridor early harvest projects and was completed in 2019.
