HUBCO demands Rs19bn dues of Narowal plant

Karachi: The Hub Power Company Limited has demanded the Government to immediately release payment out of its overdue amount of Rs.19billion of Narowal Power Plant. The 225 MW Power Plant located in Punjab is completely shut down due to non availability of oil.

Zafar Iqbal Sobani, CEO HUBCO said in a statement here Wednesday: “We are unable to run our power plant due to our inability to procure oil. We request the Government to clear the dues so that we could help bridging the gap between power demand and supply by running our plant on immediate basis. The plant can generate 225 MW of electricity for national grid, thus can help immensely to reduce load shedding in the country.”

Sobani said that while we appreciate the appointment of Dr. Musaddaq Malik as Minister for Water and Power, we also hope that he will take concrete steps to solve the issues being faced by the independent power producers.

He said that industry is expecting better decisions from caretaker Minister to run country’s efficient power sector at its full capacity. He also hoped that the new Water & Power Minister pays due attention to the non-payment issues being faced by IPPs and ensures balance treatment to all the IPPs with regard to their pending dues.

He maintained that the government is only paying to IPPs based on their last day’s generation hence Narowal is not being paid at all for the last three weeks as it is not generating power due to non availability of fuel.

He said those IPPs which went to Supreme Court are receiving partial payments for generating power. Though these IPPs also have overdue receivables but their dues are substantially lower than Narowal Power Plant’s over dues which are over Rs.19 billion, he added.