The Ministry of Energy has proposed the Economic Coordination Committee to approve Rs. 262 billion payables to government owned power plants (GPPs).
Sources said that the Ministry of Energy on the direction of the International Monetary Fund (IMF) has finalized the plan to settle Rs. 262 billion payables to GPPs at par with IPPs.
Sources said that the Energy ministry has proposed a payment plan of Rs. 262.075 billion to WAPDA and other GPPs after consultation with the Finance Division and Economic Affairs Division.
An amount of Rs. 262.075 billion have been allocated In CFY 2023-24 and it was agreed in recent meeting that out of Rs. 262.075 billion, an amount of Rs. 131.035 billion may be released in 2nd Quarter and remaining amount of Rs. 131.040 billion may be released in Quarter of CFY 2023-24.
In view of the above, approval of Technical Supplementary Grant of Rs. 262.075 billion in Investment Head under Power Division’s and release of the same as investment in DISCOs, is required.
The Energy division has proposed that finance division to release Rs. 131.035 billion to GPPs (Rs. 26.782 billion to GENCO-II, Rs 2.965 billion to GENC0-III, Rs. 83.638 billion to WAPDA, Rs. 16.015 billion to Quaid-e-Azam Thermal Power (RLNG) and Rs. 1.635 billion to Quaid-e-Azam Solar Power) for 2nd Quarter.
Similarly, for the 3rd Quarter, payment of Rs. 131.040 billion to GPPs ( Rs. 26.787 billion to GENCO-11, Rs. 2.965 billion to GENC0-111, Rs. 83.638 billion to WAPDA, Rs. 16.015 billion to Quaid-e-Azam Thermal Power (RLNG) and Rs. 1.635 billion to Quaid-e-Azam Solar Power).
It is pertinent to note that the Power Division submitted a Summary for ECC of the Cabinet, dated March 16, 2022, to seek approval for clearance to past liabilities amounting to Rs. 444.5 billion in respect of GPPs.
A supplementary grant for release of Rs. 182.465 billion for onward payment to Pakistan Atomic Energy Commission (PAEC), Water & Power Development Authority (WAPDA) and National Power Parks Management Company (NPPMCL), as per payment mechanism already approved for IPPs, was accordingly approved and subsequently released in FY22-23.
Payments were made to the PAEC, WAPDA and NPPMCL, in accordance with ECC’s decision in Case No. ECC-97/12/2022 dated March 30, 2022.
