LAHORE: The vicious circular debt has surfaced again as 14 Independent Power Producers (IPPs) have served notices on the government under the sovereign guarantee over dues of Rs42.3 billion.
According to an official of the Independent Power Producers Advisory Council, the National Transmission and Dispatch Company (NTDC) has defaulted on. The notices have been served at the Private Power and Infrastructure Board (PPIB) over power purchasers’ failure to pay verified and approved receivables to the power producers.
According to the details, Pakgen has to receive Rs3.9 billion; Lalpir Power Rs4.7 billion; Kohinoor Energy Limited Rs1.7 billion; Rousch Rs2.9 billion; Nishat Power Rs4.2 billion; Nishat Chunian Rs6.1 billion; Liberty Power Tech Rs4.8 billion; Hubco Narowal Rs3.7 billion; Atlas Power Rs4.1 billion; Saif Power Rs2.4 billion; Sapphire Electric Rs1.5 billion; Engro Power Rs8.6 billion; Orient Power Rs6.3 billion; and Halmore Rs7.7 billion respectively.
Sources said the power purchaser has to clear dues on a regular basis lest it became too difficult for IPPs to continue production. If they fail to do it, the government has to pay as the sovereign guarantor to continue the generation and avoid closures of plants.
“The power purchaser failed to realise this and, as a result, the dues have mounted to Rs42.3 billion for which the government has to intervene now,” they added.
