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HomeEconomyECC okays Rs96.13bn TSG for payment to IPPs

ECC okays Rs96.13bn TSG for payment to IPPs

June 22, 2022 (MLN): The Economic Coordination Committee (ECC) of the Cabinet on Wednesday approved the Technical Supplementary Grant (TSG) of Rs96.13 billion to the Power Division for payment to the IPPs as a second instalment (60% payment), said a statement issued by Finance Division today.

On the summary of Power Division on settlement of payables to the government-owned Power Plants at par with IPPS, the ECC allowed Power Division to release Rs17bn during the current financial year as investment in DISCOs for payment to RLNG-based public power plants (Haveli Bahadur Shah, Bhikki and Balloki Power Plants) to meet the cash requirement.

The ECC also approved tariff rationalization for K-Electric by way of adjustments of an increase of Rs0.571/unit with a recovery period of three months.

Ministry of Energy, Power Division submitted the summary on tariff rationalization for the power sector. As per National Electricity Policy 2021, the government may maintain a uniform consumer-end tariff for K-Electric and state-owned distribution companies.

Accordingly, KE applicable uniform variable charge is required to be modified to maintain the uniform tariff across the country.

Further, NEPRA to issue a revised schedule of tariffs determined for the Quarter October to December 2021, or incorporate in the latest schedule of tariffs for the quarter Jan- March 2022 after incorporating tariff rationalization.

Ministry of Energy, Power Division submitted another summary on notification of quarterly tariff adjustments (QTAs) of K-Electric Limited and associated financial impact. The ECC after a detailed discussion allowed utilizing the available budget of Rs36.948 billion as advance subsidy in FY-22 for onward release to CPPA-G due to paucity of time.

The ECC considered and approved a supplementary grant of Rs1224.41 in favour of Ministry of Interior for payment to the families of deceased/ Shaheed employees under the Prime Minister’s Assistance package in order to support the families of Shuhda/deceased of ICT Police who have sacrificed their lives in the line of duty.

In addition to it, the ECC approved Rs6,133.314 million in favour of the Federal Directorate of Immunization (FDI) to procure vaccines for uninterrupted supply to the provinces in order to support the immunization programme for children under 1 year of age against ten vaccine-preventable diseases (VPDs).

The ECC also approved Rs. 3,096.05mn for Ministry of Kashmir Affairs & Gilgit-Baltistan for further release to AJ & K Government for permanent settlement of Illegally Indian Occupied J& K refugees stranded in AJ&K.

Furthermore, technical supplementary grants worth Rs5,891.9mn, Rs40mn, Rs125.8mn, Rs3750mn, Rs379mn, and Rs5bn have been approved in favour of the Ministry of Interior, media publicity campaign by NCOC, Cabinet Division, Ministry of Foreign affairs, MoITT, and Pakistan Railway.

On the other hand, the ECC rejected the proposal submitted by the Ministry of Housing and Works for the allocation of additional funds for the repair and maintenance of the Ministers’ Enclave, Islamabad due to austerity measures taken by the present government.

Rs87.5mn in 2018-19, Rs4.8mn in 2019-20 and Rs50mn in 2020-21 have already been utilized for repair and maintenance of the Ministers’ Enclave by the previous government, the statement added.   

Federal Minister for Finance and Revenue Mr Miftah Ismail presided over the said meeting.


Copyright Mettis Link News

Posted on: 2022-06-22T19:02:22+05:00


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