Circular debt crosses massive Rs 500 billion mark

Some 48 percent of the Independent Power Producers (IPPs) are non-operational due to the non-payment of dues, said power sector sources. It may be noted that the circular debt has crossed the magical figure of Rs 500 billion and is further likely to grow due to low recovery and high rate of power theft across the country.
Total installed capacity of IPPs in the country is 14,683 almost half of which is dysfunctional, causing a negative impact on the supply side of electricity. Meanwhile, total installed capacity from all sources is 30,195 megawatt and IPPs top this capacity, followed by 6001 megawatt of thermal and 2069 megawatt from other sources including nuclear, coal, wind, biogases and solar etc.
The power supply situation is witnessing a gap of over 3000 megawatt between demand and supply as the demand is over 18000 megawatt against a generation of 15315 megawatt at present. Out of the current status of power generation, IPPs share 7764 megawatt, followed by 3034 megawatt from hydel, 2283 megawatt from PEPCO thermal and 2232 megawatt from other sources.
When asked about the generation status of power plants, the sources said Neelum Jhelum has an installed capacity of 916 megawatt and it is generating only 212 megawatt at present. Similarly, 1410 megawatt Tarbela 4th unit is dysfunctional. So far as the RLNG projects are concerned, both Bhikki and Haveli Bahadur Shah are totally dysfunctional while Balloki is generating 1160 megawatt electricity.
It may be noted that the industry is set to face a load shedding of 10 to 12 hours a day during the holy month of Ramazan because of non-operationalization of half of the capacity of IPPs. The industry circles have raised eyebrows over the situation, questioning that where the 10,000 megawatt electricity was being supplied that the government has claimed to have added to the system over the last four years.
Power sector sources are of the view that melting down of snow from hilly areas with rise in temperature would push hydel generation in the days ahead that would bring down the demand supply gap in the country.