Good News | Govt ends contracts with five IPPs | Energy Minister Awais Leghari's Give Breaking News - video Dailymotion

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#AwaisLeghari #Electricity #BreakingNews #PMShehbazSharif #IPPs #PTI  #waseembadami #11thhour   Good News | Govt ends contracts with five IPPs | Energy Minister Awais Leghari's Give Breaking News

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00:00It is a news related to the common man. You may remember.

00:02A few months ago, there was a sudden discussion about IPPs.

00:05You all know that people get so much expensive electricity.

00:09Electricity is more important than rent and house rent.

00:13So, we have made agreements with IPPs that they have to pay capacity charges.

00:21That is, we have made agreements with them that even if they do not produce electricity,

00:27they have to pay the charges.

00:29That is why we have made agreements.

00:31There were demonstrations and protests. All the parties spoke up.

00:33The government said that we are already working on this.

00:36And we will give you good news.

00:37It seems that some good news has come.

00:40Obviously, it seems so.

00:41We have all the reasons to believe that a good news has come.

00:43A good start has been made.

00:44The government has made agreements with two, not three, not four, not five IPPs

00:48that they have to pay so much money.

00:50They have to pay Rs. 411 billion.

00:52We will not have to pay that.

00:53And this benefit will be transferred to the public.

00:56And agreements with more IPPs will either be terminated or renegotiated.

01:00And in this way, more or less people will have a shortage of at least Rs. 10 per unit of electricity

01:06for the public in the times to come.

01:09We talk to the relevant minister, the competent minister, Mr. Amit Laghari.

01:14We try to understand in simple words that will there really be a shortage of electricity for the public?

01:18If there will be, when will it be?

01:19How many IPPs have been terminated?

01:22Are those IPPs from Pakistan or from abroad?

01:24Are those IPPs from the government of Pakistan or not?

01:27These are some basic things that we try to understand in simple words.

01:32We have with us the competent minister, Mr. Avis Laghari.

01:37Mr. Avis, Assalam-o-Alaikum.

01:38Assalam-o-Alaikum, Sir.

01:40Sir, thank you very much for your time.

01:42And it is good that these efforts are coming forward.

01:45We do bad work where it is necessary.

01:50Within the limits of decency, of course.

01:52But if it seems appropriate and good work is being done, then it should be appreciated.

01:55Please explain a few things to us in a common sense.

01:58First, you said that this will save Rs. 411 billion annually,

02:03while the public will benefit from Rs. 60 billion.

02:06What does this mean?

02:07That all the profits that will be saved will not be transferred to the public.

02:10What will happen?

02:12Mr. Wasim, thank you for inviting me to your show today.

02:16After a very careful analysis, our government had decided

02:22that in the next few months, we will take such steps

02:28that will reduce the cost of electricity by about Rs. 8 to Rs. 10 per unit.

02:36Right.

02:37There are about six to seven different steps.

02:41At different times, as they are realized in the groups,

02:46we will continue to benefit the public.

02:49The first step from that was the selection of those plants

02:53that we no longer need in the system.

02:56There were five plants.

02:58We had to make a capacity payment of Rs. 411 billion in the next few years.

03:05Whether we take electricity from them or not,

03:08we did not feel the need to take electricity from them.

03:12We made a capacity payment of Rs. 411 billion with them

03:19and said that you can retire your plants from now on.

03:23With their help, they agreed to this with mutual agreement.

03:29We had to pay them a total of Rs. 411 billion.

03:34We will save about Rs. 70 billion per year.

03:40That Rs. 70 billion per year will be the translate of Rs. 70 paise per unit,

03:48which will give our consumers an advantage.

03:51And they will get it forever.

03:53That is, the Rs. 70 billion per year that we had to pay,

03:57will be exhausted from the system.

03:59Because of this, the consumer will get an advantage.

04:03So, the Rs. 411 billion that we had to pay,

04:06will be transferred to the public on the 21st.

04:12Yes, we had to pay Rs. 411 billion to different plants

04:17at different times in the near future and medium term future,

04:22which we do not have to pay now.

04:24Sir, these plants were generating about 2,400 megawatts of electricity.

04:29So, there will be no deficit.

04:31We had more electricity than we needed.

04:33Now, if these 2,400 megawatts do not come,

04:35then there will be no difference.

04:37We will take it from Rs. 9. Is that right?

04:39Yes, these were the most expensive plants,

04:42which never came above dispatch,

04:44because their energy price was expensive.

04:47And the surplus plants that we have,

04:50I have already told you in my statements,

04:53that just to save 86 hours of load-shedding throughout the year,

05:05you have installed about 3,500 megawatt plants.

05:09Out of these, there were 2,400 megawatts,

05:13which had about four plants of furnace oil,

05:16and one plant of RLNG, Raush.

05:19These plants will be out of our system now.

05:22Sir, is it possible that

05:24people can get immediate relief,

05:26which they can see in their next month's electricity bill?

05:30Or, like you said,

05:32Rs. 10 per unit will ultimately be beneficial.

05:35So, how long should people expect this estimate?

05:39As our agreements materialize,

05:44in the next month,

05:46we will make these agreements effective from 1st October, retrospectively.

05:54This is the job of the regulator.

05:57It won't take too long.

06:00The benefit of this will come under your next QTA,

06:05and there will be a reduction in capacity payments.

06:08Okay.

06:10None of these plants were imported.

06:13They were all Pakistani.

06:15When there was a lot of debate on IPPs,

06:17it was said that the government should stop

06:20the government-owned plants first.

06:23So, please tell us,

06:24how many of these 5 were under the government's control?

06:28None of these 5 were owned by the government.

06:32None of the government's plants can be shut down.

06:37They have more utility.

06:39They are new plants.

06:41Their electricity is more efficient.

06:44Along with the government's plants,

06:47the return on equity that is given to them,

06:51their profit,

06:53we are talking about reducing that.

06:57This will save you around Rs. 150 billion annually.

07:02And that, God willing,

07:04we are increasing each category.

07:09First, we did 5 plants.

07:11Now, we will do the government.

07:13We will do the others as well.

07:15Then, there will be tree profiling.

07:17Then, there will be take-and-pay.

07:20Take-and-pay plants.

07:22So, all these things.

07:24That is why we have an idea

07:26that in the next few months,

07:29we will realize our people and give them, God willing.

07:34Which you said should be expected to be around Rs. 10 per unit.

07:38God willing.

07:41You are saying that the government's plants cannot be shut down.

07:44They will not be shut down.

07:45But will the government's plants be given capacity payments?

07:50The government's plants will be given capacity payments

07:53only to the extent that

07:55their loan repayment,

07:58financial cost of the loan,

08:00and O&M should be met.

08:03The return on equity,

08:06the part of the capacity payment,

08:08is the only medium

08:10in which we can reduce the government's money.

08:14And it should have an impact of around Rs. 150 billion.

08:19Right now, our negotiations with all of them,

08:22in which VAPTA,

08:25LNG plants, nuclear plants,

08:27GUTU, Nandipur,

08:29and all these plants are included,

08:31our negotiations have begun.

08:33Towards the end, sir,

08:35We are talking about Pakistani plants,

08:37government plants,

08:38the foreign plants,

08:39there are Chinese plants as well.

08:41And the unfortunate incident that took place at Karachi airport,

08:44the target was set.

08:46We came to know that we had to talk to them about IPPs.

08:49We had to talk to them on this model.

08:51Obviously, that process took a while.

08:53To what extent did it take?

08:54When will this process start again?

08:59We have around 10 plants,

09:0210 projects,

09:04which are funded by CPEC,

09:06and have Chinese lending in them.

09:09Negotiations with all of them had begun.

09:14It was in a very advanced stage.

09:16The finance minister himself is leading it.

09:19I am assisting him in the exercise of debt re-profiling.

09:23We understood,

09:25we understood until a few days ago,

09:28that this is a matter of one or two weeks,

09:31when one of them,

09:33a very big number,

09:35had come to the position of signing the MOU.

09:39But unfortunately,

09:41this incident at Karachi,

09:43these are the Chinese targeted incidents of terrorism.

09:50That is why we say,

09:52their aim is to destabilize the economy of Pakistan.

09:57This is a part of a well-thought-out plan.

10:01Because of this,

10:03unfortunately,

10:05the process of MOUs will be delayed.

10:07But we hope that

10:09we will conclude this soon,

10:11Inshallah.

Good News | Govt ends contracts with five IPPs | Energy Minister Awais Leghari's Give Breaking News

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