Cabinet meeting: Approval of revised agreements with 14 IPPs, benefit of Rs 1.4 trillion

The federal cabinet has approved revised agreements with 14 Independent Power Producers (IPPs), the revised agreements with IPPs will save the government Rs 1.4 trillion.

A federal cabinet meeting was held under the chairmanship of Prime Minister Shahbaz Sharif in which the revised agreements with 14 IPPs were approved. According to the agreements, the proposal to reduce the profit and cost of 14 IPPs by 802 billion rupees was approved.

According to the announcement, 35 billion rupees will be deducted from these IPPs in the form of excess profits of previous years, the revised contracts with IPPs will save the government 1.4 trillion rupees and annual savings of 137 billion rupees will be made, which will benefit the consumers. will reach

The Prime Minister said that the revised agreements with IPPs are a big success, it will save the national exchequer, eliminate revolving debt and reduce the cost of electricity.

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The Prime Minister commended the Energy Minister for the successful revised agreements with the IPPs.

According to the statement, the Task Force for Power Division has submitted proposals for revised agreements with 18 more IPPs. The task force headed by Energy Minister Owais Laghari presented the proposals in the cabinet meeting.

According to the Power Division, all these approvals will benefit consumers by Rs 922 billion in the coming years. So far the contracts have been revised with 28 IPPs. The total savings will be Rs 1457 billion and Rs 137 billion annually.