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NTDC to hold meeting with IPPs

The National Transmission and Despatch Company (NTDC) on directives of the Supreme Court has called a meeting of eight independent power producers (IPPs) on Monday to resolve their issue of outstanding dues before the 25th of this month, sources said on Saturday.

They said that the government and the NTDC would then submit a report to the Supreme Court that the cause of the writ petition filed by IPPs has been addressed.

The agenda of the meeting is to reconcile and examine the accounts of the petitioner IPPs and to explore the possibility of a fresh settlement agreement mutually agreed between the parties.

The NTDC and the government had committed before the court to come up with solution on the next hearing on July 25th as the Supreme Court advised the government and the NTDC to arrange due payments to the IPPs.

In the last hearing on Friday, the Attorney General and the lawyer of the NTDC told the bench that the government did not have enough money to retire the dues of the IPPs. The court had mentioned of the consequences which the government would face in case IPPs invoked international arbitration.

The council of the IPPs told the court that the government was imposing penalties on them for not making available full capacity to generate the power which was only because of shortage of funds due to non-payment of overdue receivables of IPPs by the government and the NTDC. The bench advised the government and the NTDC to come up with the solution to this problem also.

“The Supreme Court has taken a pragmatic approach by advising NTDC to resolve this matter as soon as possible and this was the reason we instead of going for international arbitration opted for moving the court,” said a representative of IPPs’ council.

A set of eight IPPs moved the Supreme Court against not receiving their Rs61.401 billion from the government despite invoking the sovereign guarantee which the government defaulted. —Javed Mirza

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