ISLAMABAD: Power Division has sought Rs 93.438 billion from Finance Ministry to settle payables to the Government-owned Power Plants (GPPs) at par with IPPs, official sources told Business Recorder.

Sharing the details, sources said, Power Division submitted a summary for ECC on January 26, 2022 soliciting approval of ECC for supplementary grant for release of Rs 182.465 billion for payment to Pakistan Atomic Energy Commission (PAEC), Water and Power Development Authority (WAPDA) and National Power Parks Management Company Limited (NPPMCL) as per payment mechanism already approved for IPPs.

The ECC of the Cabinet, in its decision of March 30, 2022 approved Rs 72.986 billion as supplementary grant during FY 2021-22 to Power Division in three equal monthly instalments (April, May & Jun 2022). Accordingly, payments were made to the PAEC, WAPDA and NPPMCL in accordance with the decision of the ECC.

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Further, ECC of the Cabinet on June 22, 2022 approved the payment for RLNG based Government Owned Power Plants (GPPs), accordingly payment of Rs 16.041 billion were made to NPPMCL and Quaid-e-Azam Thermal Power (Private) Limited in accordance with the decision of the ECC.

According to sources, in CFY 2022-23, Rs. 180.475 billion has been earmarked for payment to GPPs and IPPs in the budgetary allocation. The balance payable to GPPs, against cash settlement amounts of Rs 93.438 billion which would invariably be made during this fiscal year for which budget allocations are already made. The sources maintained that payables to GPPs as on August 31, 2022 stood at Rs 756.70 billion.

In view of existing financial position of government owned power plants, Power Division has sent a summary to the ECC for release of Rs 93.438 billion in favour of Government-owned Power Plants (Rs. 43.698 billion PAEC, Rs. 33.636 billion WAPDA and Rs. 16.377 billion NPPMCL) that have reduced their tariff and the same should be adjusted from the remaining payable of respective GPPs.

Copyright Business Recorder, 2022