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
April 28, 2021
ISLAMABAD: The Economic Coordination Committee (ECC) that meets today (Wednesday) is most likely to approve a summary of the Power Division seeking approval of Rs89.86 billion for the payment of 40 percent dues as the first installment to 20 IPPs.
The remaining 60 percent payment will be paid in six months. And the implementation of their amended contracts will be effective after the payment. So far, the government has signed MoUs with 47 IPPs out of which it has signed amended contracts with 32 IPPs. After 40 percent payment of their dues amounting to Rs403 billion to all the 47 IPPs, their amended contracts will be effective yielding dividends of Rs836 billion in the next 20 years as discounted tariffs.