Government to Pay Only for Delivered Power Under Upcoming IPP Contracts, Streamlining Costs

Agreement Expected with 18 IPPs in Two Weeks, Potential Annual Savings of 70-100 Billion Rupees
The government is poised to finalize new agreements with 18 Independent Power Producers (IPPs), which could lead to annual savings of 70-100 billion rupees.
As reported by Geo News, these agreements—aligned with the 1994 and 2002 power policies—will allow the government to procure electricity on a “take-and-pay” basis from IPPs with a total generation capacity of 4,267 megawatts. The signing of these new contracts is anticipated within two weeks.
Negotiations are progressing positively, and the “take-and-pay” model means the government will only pay for electricity that is actually supplied, avoiding any payments based solely on production capacity.

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