Wise_Guy 44 Posted April 22, 2010 KARACHI (Azhar Ali Khan): Kot Addu Power Company (KAPCO) – the biggest independent power producer of the country, has shelved its $350 million expansion plan over circular debt woes, ARY News reported Thursday. The KAPCO had earlier planned to invest nearly $350 million for the expansion of its existing power plant and to generate an additional 280 Mega Watts (MW), according to a statement sent by the company to Karachi Stock Exchange (KSE). The statement further read that the volume of circular debt has reached its all-time high and the power producers are in a fix as they are facing one of the worst financial crisis in past few months. KAPCO has to pay approximately Rs59 billion of different institutions, of which Rs 19 billion is to be paid only to the Pakistan State Oil (PSO) for furnace oil buying the company needed to run its power plant, officials said. Officials informed that the company was seriously thinking of retiring circular debt rather investing bulk amount in expansion plan, therefore, “the expansion project has been shelved”, they added. Share this post Link to post Share on other sites
shahabi 23 Posted April 22, 2010 Hmmm good step taken..... Share this post Link to post Share on other sites
