Significant progress has been made in the government’s negotiations with Independent Power Producers (IPPs), following the establishment of a task force by the Prime Minister. The task force has recommended shutting down five IPPs due to their high-cost power generation.
According to Express News, the task force suggested closing down power plants with a combined capacity of 2400 MW. The task force proposed shutdown of IPPs with a capacity exceeding 1200 MW.
The companies recommended for closure include AES Lal with a capacity of 362 MW, Atlas Power with 224 MW, and Saba Power with 136 MW. The plan also involves shutting down the 450 MW one more Power Plant. The federal cabinet will review and approve the termination of contracts with these IPPs.
However, the government has faced resistance during investigations into the profits of several IPPs. The task force uncovered false profit claims by multiple companies, which reported a 15% return, while their actual profits exceeded 20 times that amount.
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