ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet is likely to approve Rs262.075 billion technical supplementary grant (TSG) for the settlement of payables to government-owned power plants (GPPs) at par with IPPs today (Wednesday).
Sources said that the Power Division in a proposal informed the ECC that it had submitted a summary on 16th March 2022 for seeking approval for clearance to past liabilities amounting to Rs444.5 billion in respect of GPPs.
A supplementary grant for the release of Rs182.465 billion for onward payment to the Pakistan Atomic Energy Commission (PAEC), Water and Power Development Authority (WAPDA) and National Power Parks Management Company (NPPMCL), as per payment mechanism already approved for the IPPs, was accordingly approved and subsequently released in the fiscal year 2022-23.
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Payments were made to the PAEC, WAPDA, and NPPMCL, in accordance with the ECC’s decision dated 30th March 2022. For the remaining payments of Rs262.075 billion (as on 30.11.2020) to WAPDA and other GPPs, it was proposed that an exercise may be carried out for cash and non-cash settlement by the Power Division, the Finance Division, and the Economic Affairs Division.
In the current fiscal year 2023-24, Rs262.075 billion have been allocated against the Finance Division’s as a lump sum provision for power subsidy. The ECC was further informed that the Finance Division has been taken on board and it has been agreed that out of Rs262.075 billion, an amount of Rs131.035 billion may be released in the 2nd Quarter and the remaining amount of Rs131.040 billion may be released in the 3rd Quarter of the ongoing fiscal year.
In view of the above, approval of TSG of Rs262.075 billion under the Power Division’s demand and release of the same as investment in DISCOs is required, which included for the 2nd Quarter, payment of Rs131.035 billion to GPPs (i.e. Rs26.782 billion to GENCO-II, Rs2.965 billion to GENC0-III; Rs83.638 billion to WAPDA; Rs16.015 billion to Quaid-e-Azam Thermal Power (RLNG), and Rs1.635 billion to Quaid-e-Azam Solar Power).
And for 3rd quarter payment included Rs131.040 billion to GPPs (i.e. Rs26.787 billion to GENCO-II Rs2.965 billion to GENC0-III; Rs83.638 billion to WAPDA; Rs16.015 billion to Quaid-e-Azam Thermal Power (RLNG), and Rs1.635 billion to Quaid-e-Azam Solar Power).
Copyright Business Recorder, 2023
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