ECC mulls action against K-Electric
Reviews possibility of takeover, suspension of additional power supplies
The ECC approved a reduction in tax liabilities of two Chinese companies that were working on hydropower projects in Azad Jammu & Kashmir. PHOTO: PID
ISLAMABAD:
The Economic Coordination Committee (ECC) on Wednesday reviewed an option to take “considerable action” against K-Electric, including a possibility to take over the company and suspending additional power supplies due to its failure to meet commitments.
Headed by Federal Minister for Finance Shaukat Tarin, the ECC also approved payments of Rs90 billion to 35 independent power producers (IPPs) and gave Rs27.5 billion to the National Disaster Management Authority (NDMA) under prime minister’s Karachi package.
ECC delays approval of IPPs’ arrears
Power Division sought financing to pay first instalment to power plants
Power plants under the 2006 policy would get Rs4.2 billion in the first installment, subject to clearance by the ECC. PHOTO: PID
ISLAMABAD:
The government on Wednesday put off approval of a Rs89.9 billion supplementary budget to partially clear arrears of Independent Power Producers (IPPs) due to fear of National Accountability Bureau (NAB), which was delaying decision by a cabinet body.
Like his two predecessors, Finance Minister Shaukat Tarin as Chairman of the Economic Coordination Committee (ECC) deferred a summary of the Power Division that sought Rs89.9 billion to pay the first installment to 20 IPPs.
Top Story
December 16, 2020
ISLAMABAD: The government has decided not to procure expensive LNG for the first 18 days of January, 2021 that Pakistan LNG Limited (PLL) attracted in response to urgent tender bids, which might cause a massive gas crisis in the first month of the year, top officials privy to the development confided to The News.
“This will result in stopping the RLNG supply to the power sector in January and increasing reliance on power plants based on diesel and furnace oil for electricity generation. In the winter season, hydel power generation also goes down to the lowest ebb.”
The question arises whether the current situation could have been averted if the government had decided to float tenders in August-September for the winter. It is being questioned if almost one month before opening of bids with 10 days validity period is a faulty strategy or a design to benefit the furnace oil and diesel lobby in power sector.