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Finance ministry to right away pay Rs180bn to IPPs as a part of new deal

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Finance ministry to immediately pay Rs180bn to IPPs as part of new deal

ISLAMABAD: The Ministry of Finance is obligated to right away pay Rs180 billion to the unbiased energy producers (IPPs) as a part of a brand new Rs450-billion fee deal signed on Monday, Geo Urdu reported.

In response to the deal paperwork, two dozen IPPs, together with the Hub Energy Firm Restricted (HUBCO), had entered right into a preliminary settlement with the federal government below which the finance ministry would pay the IPPs 40% of the Rs450-billion fee — or Rs180 billion — instantly, whereas the remaining 60% — or Rs270 billion — will likely be paid within the subsequent monetary 12 months.

The IPPs, as per the paperwork, have apprised the Pakistan Inventory Alternate (PSX) of the preliminary settlement, whereas the HUBCO submitted details about the settlement with the Central Energy Buying Company (CPPA).

The paperwork additional acknowledged that late fee surcharge can be slashed below the settlement and would quantity to 2% for the primary 60 days after the deal.

The doc additionally underscored that below the settlement, IPPs can be paid dividends in Pakistani rupees as a substitute of US {dollars}, whereas a last approval of the deal can be sought from the committee and the Cupboard.

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