Six more IPP deals to end

In a major development towards the government's efforts for saving the energy cost and reducing power tariff in the country, the power purchase agreements with six more IPPs would be terminated, sources said on Friday.

They said that federal government had decided to terminate the agreements with six more IPPs, which had the cumulative capacity to produce 2,396 megawatts. The termination of the agreement would likely save more than Rs300 billion, they added.

The government paid more than Rs2 trillion annually to the IPPs in the form of capacity payments, the sources said.