Five major IPPs given tax free payments, reveals report

LAHORE: An annual report of Independent Power Procedures (IPPs) payments revealed that five major powerhouses were given tax-free payments, ARY News reported citing sources.

According to the report, Hub Power was paid Rs 260 billion at 16 percent capacity by the government, Engro was given Rs 74 billion at 54 percent capacity while Lucky Group was paid Rs 62 billion at 28 percent capacity.

Similarly, Sapphire was given Rs 34 billion at 34 percent capacity, Mian Mansha’s powerhouses operated at 13 percent capacity and were paid Rs 25.6 billion.

The sources said these companies are paid annually under agreements and the audit department is responsible for the rest

The Ministry of Energy sources maintained that if there is any irregularity, strict action will be taken.

Earlier, former Caretaker Minister Gohar Ejaz said that the government is paying two trillion rupees to IPPs, which are generating 30 percent of their capacity.

Addressing a press conference, he said that 70 percent payment being taken without generating electricity. “The Independent Power Producers should be paid as much amount according to their power generation,” Gohar Ejaz said.

“We have only one demand, pay as much amount to an IPP as it produces power,” he said.

“We have prepared a petition and going to the Supreme Court,” former minister said. “Everything will clear with forensic audit of the IPPs,” he said.

“It is not the government’s job to do business,” he stressed.