M/s Nishat Chunian Power Limited (NPCL) has approached the Minister for Power, Omar Ayub Khan for prompt release of payment to resolve liquidity crisis which the company is facing due to "delayed" payments by CPPA-G of "undisputed" receivables.
According to the Power Company, as on November 18, 2019 "undisputed" receivables surged to Rs 18 billion (including overdue amount of Rs 17.56 billion) - the highest of all time. The oldest invoice that is unpaid pertains to August 2014, a delay of as many as 1,881 days.
The company maintains that it has defaulted in timely repayment of long-term loan as its interest amounting to Rs 750 million was due for payment on September 30, 2019. Credit lines available with the company are fully utilised and banks have declined to give any other financing to the company.
"If repayment of the full amount is not made within 90 days the company would officially be placed CIB," said the company's director Shahzad Saleem in a letter to the Minister. As per payment mechanism for all IPPs, CPPA-G makes payments of 82 per cent of all invoices that became overdue after July 2017 amounting to Rs 44.34 billion, whilst the payment since then is Rs 32.16 billion which indicates a recovery of just 72.5 per cent. In order to reach 82 per cent mark Rs 4.2 billion has to be paid immediately by CPPA-G to keep NCPL at par with other IPPs.
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