The Economic Coordination Committee (ECC) of the Cabinet has approved criteria for disbursement of Rs200 billion in power sector and decided that energy purchase price inclusive of the GST would be paid for peak season of June-August 2020 and capacity payment would be disbursed to meet the debt servicing needs and taxation requirements from June to end August.
The ECC also approved the criteria that payments to Wapda, Nuclear Power Plants and partial settlement of import of power from Iran and the NTDC transmission charges would be disbursed separately for operational requirements for public sector plants and entities, as the Wapda and nuclear power plants comprise more than 30 percent of the total planned generation in the next three months.
However, these disbursement criteria would be followed for funds released under Rs200 billion only.
The ECC meeting presided over by Adviser to Prime Minister on Finance Dr Abdul Hafeez was presented revised proposal by the Power Division on Saturday as was directed by a day before meeting to come up with the criteria for disbursement of Rs200 billion Islamic Sukuk in the power sector.
The ECC directed Ministry of Energy to submit a proposal in the next two weeks setting up the general principles and exact formula of payments based on the principles for the future payments.
The adviser also directed the Ministry of Energy to minimize discretion in the principles/formula, so that the funds may reach the maximum possible number of receivers and reduce the built up of liabilities towards the government.
It was also directed that as soon as the payments are made, the information should also be made public through the official website of the ministry for the information of the general public.
On the proposal of the Ministry of Industries and Production, the ECC approved the release of Rs525.858 million in favour of the Government of AJK for disbursement among the eligible commercial and industrial consumers of electricity under the PM's SME Relief Package, and similarly, Rs136.299 million to be provided to the government of Gilgit-Baltistan for disbursement among the eligible commercial and industrial consumers of electricity.
Total subsidy under the SME relief package for the AJK and GB comes to 662.157 million rupees.