ISLAMABAD: The Economic Coordination Committee (ECC) of the federal cabinet approved the report of the implementation committee regarding the payment mechanism to clear the outstanding dues of Independent Power Producers (IPPs).
A meeting of the committee chaired by Federal Minister for Finance and Revenue Dr Abdul Hafeez Shaikh also directed to present the payment plan before the cabinet for final approval
Secretary Ministry of Energy briefed the ECC about the detailed report by the implementation committee regarding conversion of Memorandum of Understandings (MOUs) into agreements with IPPs to devise a payment mechanism for clearing outstanding payables.
According to a statement by Finance Division, the implementation committee has agreed on the payment mechanism with the 46 IPPs to clear the outstanding dues as of 30th November 2020.
The ECC commended the efforts made by the implementation committee and acknowledged the input of all concerned departments and ministries in devising a viable payment mechanism with the IPPs which will save approximately Rs836 billion for the government over the average life of the projects.
Meanwhile, the Federal Board of Revenue (FBR) presented a summary regarding the procurement of Video Analytics Surveillance system (VAS) for proper monitoring of the production and sale of sugar in compliance with the directive of the prime minister.
The ECC approved an allocation of Rs350 million as a Technical Supplementary Grant for installation of the most optimal VAS solution at the premises of the sugar mills during the current crushing season as requested by the FBR.
