On Wednesday the Economic Coordination Committee (ECC) of the Cabinet approved payment of Rs90 billion to 35 independent power producers (IPPs).
The ECC also took a decision to give one last chance to K-Electric (KE) for settling Rs212bn payments and inking an agreement for additional power intake from the national grid on timely payments.
Minister for Finance and Revenue Shaukat Tarin presided over the meeting and approved lowering taxes on Chinese investors of hydropower projects in Azad Jammu & Kashmir (AJK), exempting the import of oxygen and related equipment from duties and taxes besides an additional Rs27.5bn grant for disaster management schemes in Karachi.
Secretary Power gave a detailed briefing to the ECC regarding arrangement for providing additional power from the National Transmission & Despatch Company (NTDC) to KE since April 2020. He also raised the issue of non-payment for the additional power supply by KE to the Power Division.
According to informed sources, the meeting was told that Rs212bn were payable by KE to the NTDC which operates the national grid. The Cabinet Committee on Energy (CCoE) had decided last year to provide 1,350-1,400MW additional power supply from the national grid to KE in a bid to address the citizens suffering amid prolonged power outages in Karachi.