The Independent Power Producers (IPPs), which are facing acute financial crisis for non-payment of its billions of rupees dues by government, have welcomed the new minister of water and power and his commitment shown to reduce the energy crisis in the country.
While welcoming the appointment of Chaudhry Ahmed Mukhtar as Federal Minister for Water and Power, the energy sector experts on Monday suggested that the new minister should take immediate measure to enable all power producers to generate electricity as per their installed capacity.
They said at a time when the country was facing worst ever power shortage, the government could get 1000MW additional electricity immediately from 8 IPPs if they were enabled to generate power at their installed capacity level by paying their overdue amounts where GOP had already defaulted.
They appreciated Chaudhry Ahmed Mukhtar's statement issued just after his appointment as the water and power minister, in which he expressed his commitment to bring out the country from the worst ever power crisis. "We are ready to support the minister to bring the country out from this situation", they said. However the minister will have to take some immediate steps to increase power generation capability of the existing power generation plants that are producing much lower than their installed capacity due to shortage of funds because of power purchase default, they said.
"It would be the biggest challenge for the new minister to enable all power producing plants, especially IPPs to generate power as per their installed capacity", they said. They pointed out that the eight IPPs with combined power generation capacity of 1700MW are producing only 700MW because of non-payment of their dues.
They said that most efficient IPPs of the country are being deprived of even fuel at a time when the country is facing its worst ever power crisis. They said that these IPPs could produce additional 1000MW power from the same amount of fuel that is being wasted at state owned power generation plants to produce only 500MW. "These IPPs are 100 percent more efficient than state owned plants," they added.
They said that it is not possible for any IPP to go on producing power without getting any payment. They are in default with their lenders due to non payment from the government; therefore, no scheduled bank is willing in further financing for purchase of fuel.
They hoped that the new water and power minister will take immediate steps to ensure payment of Rs 18.45 billion to these eight IPPs enabling them to produce power additional 1000MW power that would help the country to reduce load shedding. They said that all the IPPs are ready to help the government in making a mechanism regarding payment of their dues. They are ready to play their role to overcome the worst ever power crisis being faced by the country, they said.
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