KARACHI: President Korangi Association of Trade and Industry (KATI) on Monday said that the IPP agreements and expensive electricity has pushed industries on the verge of devastation.
President KATI Johar Ali Qandhari has stated that the IPPs, expensive electricity and huge taxes have pushed industries in Korangi to ruins. “Payments being made in dollars for the electricity which is not being utilized”.
He said that 350 industries have been closed and big industries have curtailed their units in Korangi, while 60,000 workers have been unemployed.
He said the contracts with IPPs are unjust and stressed for review of the IPP contracts, otherwise the situation will become more serious that will bring industries and exports to standstill.
“We are getting electricity on 16 to 17 cents per unit, which is being supplied in neighboring country by 5 to 6 cents,” he said.
An outcry against expensive electricity and capacity payments to IPPs from general public as well as industrialists prevailed in the public domain. Recently various trade bodies and chambers of commerce across the country have lamented agains the impact of inflated electricity tariffs in the country.
Former caretaker minister Gohar Ejaz in a social media statement on Sunday said that the IPPs being paid large capacity amounts without generating electricity.
Former minister said, “There is a clause of “capacity payments” in all these contracts that allows inflated profits.” He said, due to this clause staggering capacity payments made to the IPPs,” he added.
He had also demanded representation to all stakeholders in the National Electric Power Regulatory Authority (NEPRA).
He also demanded that the agreements with the IPPs should be converted into “take and pay” mode.
 on Monday said that the IPP agreements and expensive electricity has pushed industries on the verge of devastation.){kind=link}