In a major development, a government team and independent power producers (IPPs) on Saturday reached an understanding on reduction in power tariff, a private TV channel reported. According to details, the negotiation between the government and the management of power plants was held in Islamabad during which the power producers agreed to reduce the electricity tariff. Sources said that the two sides would sign the MoU after a formal approval by the federal cabinet. Sources said that the agreement would help reduce the country’s circular debt. Both the sides agreed on amendments in the companies act in the wider interest of the country, the sources added. Under the agreement, the government would help the IPPs in generating maximum electricity from solar sites. Federal Energy Minister Omar Ayub had said on November 3 that industries would get power at half the tariff which will save them about Rs 21 billion collectively in production cost, ensuring an impetus for industrial growth and job creation. Talking to a private TV channel, the federal minister, expanding on Prime Minister’s package announced earlier that day, had said the bracket to benefit the most from industrial relief package is of small industrialists.