Private Power Infrastructure Board (PPIB), an arm of Ministry of Water and Power, has convened a meeting of enraged Independent Power Producers (IPPs) on Monday (today) to sort their issues highlighted in the media last week.
Ministry of Water and Power has paid Rs 30 billion to IPPs raised from commercial banks in the name of Central Power Purchasing Agency Guaranteed (CPPA-G) against their demand of Rs 52 billion. IPPs claim that their legitimate verified claims touched Rs 254 billion as on February 15, 2017.
According to the Independent Power Producers (IPPs) Advisory Council, the total verified and audited amounts overdue to the power sector (excluding Wapda hydel) stood at Rs 414 billion.
IPP Advisory Council maintained that the issue of higher GST rate on fuels versus lower GST rate on electricity is not being addressed resulting in a rapid build-up of GST refunds which are not being cleared by FBR.
Implications of Sales Tax being applied to fixed charges by FBR which will eventually get passed on to end consumers, are not even being discussed, the IPPAC added.
The First In First Out (FIFO) method for payments, as specified in agreements, is being violated deliberately; arbitrations under Dispute Resolution process in the agreements are being deliberately blocked and other violations of agreed provisions in the contracts are being done regularly, IPPAC further maintains.
The private power generating companies further argue that despite repeated efforts by the industry, GoP has so far not engaged with it to find solutions to these issues, the industry remains ready to resolve the issues amicably.
"We have made our issues public through the press and hope the government will resolve our legitimate concerns," one of the representatives of IPPs told Business Recorder.
IPPs through their Advisory Council, have accused the GoP of not engaging with them to find a solution to their genuine issues despite repeated efforts by the industry.
According to sources, IPPs will withdraw sovereign guarantee calling notices after meeting with the officials of PPIB. Managing Director PPIB, Shah Jahan Mirza was not available for comments.
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