Islamabad -  The government and Independent Power producers yesterday agreed to form various committees for coordinated approach towards the resolution of payment, outstanding dues and tax related issues.

The federal government assured the Independent Power Producers (IPPs) that their dues will be timely paid in future and the issue of outstanding dues will be also be resolved amicably, source told The Nation here.

The decision was made in a meeting of IPPs representatives with officials of Water and Power ministry, Central Power Purchase Agency (CPPA) and Private Power Infrastructure Board (PPIB).

The meeting was third in a row after the IPPs withdrew their quest for sovereign guarantee claim in wake of non-payments. Various issues, including the amounts due to the private power generators, were discussed by the government [power purchaser] and the IPPs.

Sources said that both sides agreed to have more coordinated approach towards resolution of matters relating to timely payments, General Sales Tax (GST) and others.

Different committees comprising officials from the two sides would be set up for the purpose which will meet regularly as well as in case of emergency situations, they said. IPPs assured their full cooperation in meeting the energy needs of the country. IPPs are a major contributor to power grid and are currently generating more than half [around 9,000MW] of the total electricity in the country.

The government is also trying its best to secure viable solution to the problems being faced by the IPPs. On Thursday IPPs contributed 8,580MW electricity to the grid which is the manifestation that the matters between the government and IPPs are moving in the right direction, the source argued.

Earlier this month about 13 IPPs, who have verified overdue amount of around Rs245 billion, threatened to invoke sovereign guarantees and served a final notice to the government. According to the official data, on February 15, the total verified and audited amounts overdue to the power sector [excluding Wapda hydel] stood at Rs414 billion, with share of IPPs being Rs254 billion. On March 10, the verified overdue amount of IPPs was Rs245 billion.

These IPPs demanded the government put forward an acceptable plan for clearing all payables and asked that National Transmission and Despatch Company (NTDC) and CPPA need to follow the contracts and stop violating other contractual provisions. However, the IPPs withdrew their decision to invoke the sovereign guarantees and have now agreed with the government to follow a coordinated approach for resolution of all the issues.

These IPPs, established under the 1994 and 2002 power policies, are: Pakgen Power (Rs7.778 billion), Liberty Power (Rs5.361 billion), Hubco Narowal (Rs5.024 billion), Atlas Power (Rs4.555 billion), Lal Pir Power (Rs4.552 billion), Nishat Power (Rs4.881 billion), Kohinoor Energy (2.306 billion), Attock Gen Ltd (Rs4.449 billion), Nishat Chunian Power (Rs4.16 billion), Saif Power (Rs1.503 billion), Sapphire Electric (Rs1.396 billion), Orient Power(Rs1.18 billion) and Halmore Power GCL (Rs880 million).