The Federal Government has decided to issue grants to state-owned power generation companies on the model of independent power producers (IPP), according to sources.

Interim Finance Minister Shamshad Akhtar chaired a meeting of the Economic Coordination Committee on Wednesday.

According to the sources, the meeting decided that government decided that power plants should be given technical grants on the model of IPPs.

The meeting also approved an initial payment of Rs262 billion for the powerplants, the sources added.

Additionally, the meeting also approved Rs57 billion as an advance subsidy for K-Electric to clear its dues.

The ECC also decided that the export financing scheme would gradually be phased out.