To lower the stock of circular debt, the Central Power Purchasing Agency (CPPA) has given Rs. 142 billion to Independent Power Producers (IPPs).
According to a report by Arif Habib Limited (AHL), the development is in line with the International Monetary Fund’s (IMF) proposal of reforms and advancement in the energy sector in a recently signed staff-level agreement for the SBA facility equal to $3 billion.
Recall that the government last year also paid IPPs of PP 1994 and PP 2002 Rs. 385 billion.
In IPPs comparison, Engro Powergen Thar Limited received Rs. 4.31 billion, National Power Parks Management Company Private Limited received Rs. 22 billion, China Power Hub Generation Company (Private) Limited received Rs. 9.21 billion, and Karachi Nuclear Power Plant-Unit-2 received Rs. 8.75 billion. Port Qasim Electric Power Company Ltd. (PQEPC) received Rs. 8.32 billion. The following is a complete breakdown of the disbursements:
| Company Name | Amount in Millions |
|---|---|
| ACT Wind (Pvt) Limited | 40 |
| AJ Power (Private) Ltd. | 10 |
| Appolo Solar Development Pakistan Limited | 257 |
| Artistic Energy (Pvt.) Limited | 75 |
| Atlas Power Limited | 2,700 |
| Attock Gen Limited | 2,750 |
| Best Green Energy Pakistan Limited | 137 |
| Chanar Energy Limited | 15 |
| China Power Hub Generation Company (Pvt.) Ltd | 9,210 |
| Chiniot Power Limited | 350 |
| Crest Energy Pakistan Limited | 184 |
| Daral Khwar HPP | 100 |
| Engro Powergen Qadirpur Limited | 1,000 |
| Engro Powergen Thar (Pvt) Limited | 4,310 |
| Fauji Kabirwala Power Company Ltd. | 500 |
| FFC Energy Limited | 100 |
| Foundation Power Company Daharki Ltd. | 2,500 |
| Foundation Wind Energy-I Limited | 350 |
| Foundation Wind Energy-II (Pvt.) Limited | 350 |
| Gul Ahmed Wind Power Ltd | 400 |
| Halmore Power Generation Company Limited | 1,600 |
| Hamza Sugar Mills Limited | 20 |
| Harappa Solar (Pvt) Limited | 15 |
| Hawa Energy (Private) Limited | 50 |
| Huaneng Shandong Ruyi Energy (Pvt) Ltd | 10,004 |
| Hydrochina Dawood Power (Private) Limited | 295 |
| JDW Sugar Mills Ltd. | 20 |
| JDW Sugar Mills Ltd. | 70 |
| Jhimpir Power (Private) Limited | 50 |
| Karachi Nuclear Power Plant-Unit-2 | 8,751 |
| Karachi Nuclear Power Plant-Unit-3 | 2,668 |
| Karot Power Company (Pvt.) Limited | 631 |
| Kohinoor Energy Ltd. | 800 |
| Kot Addu Power Company Ltd. | 4,250 |
| Lalpir Power (Private) Limited | 2,000 |
| Laraib Energy Limited | 125 |
| Liberty Daharki Power Limited | 1,500 |
| Liberty Power Tech Limited | 2,050 |
| Lucky Electric Power Company Limited | 5,500 |
| Master Wind Energy Limited | 50 |
| Metro Power Company Ltd | 50 |
| Narowal Energy Limited | 2,500 |
| National Power Parks Management Company Private Limited | 9,000 |
| National Power Parks Management Company Private Limited | 13,000 |
| Neelum Jhelum Hydropower Company (Pvt.) Ltd. | 2,200 |
| Nishat Chunian Power Limited | 1,600 |
| Nishat Power Limited | 2,000 |
| Orient Power Company (Private) Limited | 1,600 |
| Pak Gen Power Limited | 2,500 |
| Pakhtunkhwa Energy Development Organization (Malakand-III) | 250 |
| Port Qasim Electric Power Company (Pvt.) Limited | 8,317 |
| Punjab Thermal Power Private Limited | 750 |
| Quaid E Azam Solar Power Pvt Ltd | 50 |
| Quaid-e-Azam Thermal Power (Pvt) Limited | 7,000 |
| Rousch Pak Power Ltd. | 1,750 |
| RYK Mills Limited | 20 |
| Sachal Energy Development (Private) Limited | 139 |
| Saif Power Limited | 2,250 |
| Sapphire Electric Company Limited | 2,500 |
| Sapphire Wind Power Company Limited | 15 |
| Star Hydro Power Limited | 100 |
| Tenaga Generasi Limited | 600 |
| Thal Industries Corporation Ltd | 50 |
| ThalNova Power Thar (Pvt.) Ltd | 1,302 |
| Thar Coal Block-1 Power Generation Company (Pvt) Limited | 3,325 |
| Thar Energy Limited | 2,716 |
| The Hub Power Company Limited | 2,000 |
| Three Gorges First Wind Farm Pakistan (Private) Limited | 25 |
| Three Gorges Second Wind Farm Pakistan Limited | 98 |
| Three Gorges Third Wind Farm Pakistan (Private) Limited | 110 |
| Tricon Boston Consulting Corporation (Private) Limited | 25 |
| Tricon Boston Consulting Corporation (Private) Limited | 25 |
| Tricon Boston Consulting Corporation (Private) Limited | 25 |
| Uch Power Ltd. | 1,000 |
| Uch-II Power (Pvt.) Limited | 7,000 |
| UEP Wind Power (Pvt)Ltd | 149 |
| Yunus Energy Limited | 100 |
| Zephyr Power (Pvt.) Limited | 40 |
| Zorlu Enerji Pakistan Limited | 25 |
| Total | 141,993 |
According to the Ministry of Energy’s monthly report, compared to a decrease of Rs. 27 billion during the same period previous year, the stock of circular debt climbed by Rs. 394 billion to Rs. 2,646 billion (monthly average: Rs. 35.8 billion) during 11MFY23.
Out of the total rise of Rs. 394 billion, recovery losses of DISCOs have added Rs. 249 billion, followed by quarter tariff adjustments (QTA) and fuel charges adjustments (FCA) totaling Rs. 171 billion. Additionally, fiscal headroom in the sum of Rs. 128 billion has been made available.
Listed IPPs
According to AHL’s report, the following stated IPPs received the payment: HUBC, NEL (a subsidiary of HUBC), TEL (a subsidiary of HUBC), LEL (a subsidiary of HUBC), NPL, LPL, KAPCO, ROUSCH (a subsidiary of ALTN), NCPL, EPQL, PKGP, and SPWL. Following are the payment details of IPPs:
Along with the abovementioned IPPs, CPHGC (a HUBC associate), LEPL (a LUCK subsidiary), EPTL (a ENGRO subsidiary), and TNPL (a HUBC associate) also got payments totaling Rs. 9.2, Rs. 5.5, Rs. 4.3, and Rs. 1.3 billion, respectively.
In accordance with the IPPs report, NPL has a room for dividend payment of Rs. 5.65 per share (Rs. 11.17 at zero payment of liabilities). If the business doesn’t pay its obligations, HUBC may demand Rs. 10.79 per share.
Additionally, KAPCO got Rs. 4.3 billion and may declare a dividend of Rs. 5.0 per share. NCPL got Rs. 1.6 billion, while its short-term borrowings and payables total Rs. 6.2 billion.
To read our blog on “PM has ordered the delivery of Rs. 50 billion to Chinese IPPs,” click here.