The Ministry of Finance on Friday night paid Rs 322 billion circular debt to independent power producers (IPPs) and asked four electricity producers to convert their plants on coal as soon as possible, a top ministry official said.
“We have asked four IPPs-Hubco, Lalpir, Pakjen, and Saba-to immediately convert their electricity generation from coal and enhance their production capacity,” Finance Secretary Dr Waqar Masood said.
He said after successful negotiations with IPPs of 1994 and 2002, the government decided to pay Rs 322 billion pending in circular debt by Friday.
Dr Masood said those IPPs who had approached court agreed to withdraws their cases against the government following payment of their debts.
He further said the government had decided to extend capacity credit for National Transmission and Dispatch Company (NTDC).
The finance secretary also said after payment of circular debt to IPPs, the government had stressed them to enhance their generation capacity in order to further enhance supply of electricity in the country.
This is a very brave step towards to rebuilt our economy. Further this will definitly improve the energy position.
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