Hubco’s 225MW Narowal plant shut down due to fuel shortage on account of non-payment by government of overdue receivables

The Hub Power Company (Hubco) needs the government to make an upfront payment of Rs 3-5 billion to enable it to resume power generation from its 225MW plant in Narowal. A senior Hubco official said that the company had shut down its Narowal plant on March 26, 2013 after operating it partially since Jan 4 because of non-payment of its dues by the government. The resumption the plant can reduce power cuts in Punjab by 40-50 minutes, he said. The overdue amount for Narowal plant had exceeded Rs 19bn, causing the company to default on its payment of Rs 3.2bn to its Saudi oil supplier, Bakri. The receivables of the Narowal plant are thrice the receivables of other similar IPPs,�? he said.