Non-payment of Rs 8 billion to IPPs; SC issues notices
04 September, 2012
ISLAMABAD: The Supreme Court on Monday issued notices to the secretaries of the ministries of finance, and water and power regarding non-payment of Rs 8 billion to the independent power producers (IPPs), as per schedule.
A two-member bench comprising Justice Nasirul Mulk and Justice Ijaz Ahmed Chaudhry heard the petition moved by eight IPPs against the government, saying that the government had failed to pay them dues worth Rs 61.401 billion during the last couple of months, which had worsened the power crisis in the country.
During the last hearing, the bench noted that former and incumbent secretaries of the ministries of finance, and water and power had been directed to appear before the court and explain why the payment could not be made to the IPPs.
It observed that due to load shedding in the country the exports had been affected.
Khawaja Tariq Rahim, representing the Water and Power Ministry, in the last hearing told the court that the government had decided to pay Rs 45 billion to the power producers. He further said Rs 8 billion had been paid in July, while another Rs 8 billion would be paid by August 30 and another equal amount by September 30.
Khalid Anwar, counsel for the IPPs, appearing before the bench informed the court that the government had to pay the second instalment of Rs 8 billion to be power companies on August 30, which had not been paid yet. He further said that due to non-payment, the companies were presently producing 50 percent, adding if the payments were made then they could produce 100 percent electricity.
An official of the Finance Ministry said that due to the financial crisis, the amount could not be paid on time, however, the payment would be made in two to three weeks.
Anwar said if the government would not pay funds to the power producers then there would be more load shedding on daily basis, adding that due to the non-payment the circular debt was also rising.