Private power producers plan to start cutting generation on the fresh build-up of their unpaid bills (known as inter-corporate circular debt of the power sector) to the tune of Rs298 billion ever since the government had liquidated the previous debt of Rs480bn at the end of the last fiscal year.
The independent power producers (IPPs) contributed 57 per cent of the total power generation during the last month, generating an average of 6,168 megawatts in spite of the liquidity crunch facing them owing to a fresh pile-up of the debt .
But this cannot go on for ever. We will have to first cut our generation and later stop if our financial difficulties continued to persist due to non-payment of our bills.
