KARACHI, April 29: Chinese hydraulic experts, who recently carried out initial studies in Thar, have expressed satisfaction with the availability of the quantity of water in Thar which will be sufficient to meet the requirement of the proposed coal-fired 600 mw power project.

The completion period of the project is estimated to be four years which include the period of preparation of its feasibility and installation of the power generation unit.

The Chinese team, led by Zhi Zhu Yang, on Tuesday called on Sindh Chief Secretary K.B Rind and appreciated the arrangements made for conducting the initial hydrological study.

The team informed the chief secretary that another team would be coming soon to carry out further surveys and prepare a feasibility report.

Mr Rind also discussed with the experts the potentials of the granites resources available in the area in a large quantity.

The project will initially generate from 300 to 600 mw electricity. The coal potentials in the Thar area are spread over 9000 kms, enough to generate power for 200 and to 300 years.

The power project will add to the provincial exchequer Rs60 million to 70 million a year as royalty. Its capacity of power generation can be increased later from 600 mw upto 3000 mw.

Mr Yang said that a number of study reports, prepared by Sazda and the federal government during the last 10 years, to tape the water resources in Thar had helped their team a lot.

The Sindh government has signed an agreement with a Chinese firm, Shenhua, to set up a coal-fired power plant in Thar area which will generate from 300 mw to 600 mv electricity from coal to be excavated from the leased out 50-square-km area.

Under the agreement, after the expiry of the lease period, which will be from 25 to 30 years, the assets of the power plant will be transferred to the Sindh government.

This project is a commercial venture and is likely to be commissioned within four years after its final approval.

The chief secretary, who led a delegation to China in February and signed an agreement on behalf of the Sindh government, asked the CBR to keep the energy exceptions in view while preparing the next taxation policy.

He recalled that on the eve of the Prime Minister’s recent visit to China, A task force had been set up headed by federal finance minister Shaukat Aziz.

The chief secretary Rind said the arrangements were also being made for a presentation to the President about the development activities being carried out in Thar.

He expressed the hope that the progress of Thar would have a positive impact on the over-all economy of the province and the country.

The operational period for the Chinese firm will be 25-30 years, and after the expiry of the period the asset of the power plant will be transferred to Pakistan for good.

The agreement also bears the following salient points.

- Annual rent US$ 75 per sq kilometre (Rs20 per acre).

- Royalty (source rate) $1 (Rs60) per ton of coal produced.

-Social contribution $0.1 (Rs6) per ton produced.

-The rates would be subject to revision.

(a) Exclusive right over land for mining of coal (approx. 54 sq kms).

(b) Proprietorship right over land for construction of plant, residential colony and mining site etc.