ISLAMABAD, Aug 1: Russia will provide $1 billion assistance for rehabilitation and up-gradation of Pakistan Steel, a Russian official said on Thursday.

The matter is being considered by the Kremlin at the “highest level,” said Sergey Abutidze, Russian Deputy Director-General for Development and ‘Technopromexport’ (TPE), in a meeting with Board of Investment (BoI) chairman Mohammad Zubair.

The PSM production would be enhanced in two phases with the Russia’s help.

In the first phase, which entails rehabilitation, production will rise up to 1.5 million tonnes.

In the second phase, the production will be doubled to around 3m tonnes a year.

Zubair lauded Russia’s role in helping the PS on government-to-government basis.

Abutidze said that Technopromexport is keen to undertake projects in Pakistan and ready to provide complete turnkey solution with financing arrangements.

He discussed with Zubair the project of conversion to coal of Muzaffargarh Thermal Power plant, and establishment of new 600MW coal-fired thermal power plant at Jamshoro.

The BoI chairman offered the TPE that the construction of new coal-fired unit of 500MW to 600MW with technical concept of 500MW coal-fired unit can be considered a potential project.

The Russian official informed Zubair that TPE is one of the largest enterprises specialising in the setting up of electric power stations, and has undertaken projects in Pakistan which include installing three units at Muzaffargarh power plant in 1993-95, and 220MW Guddu thermal power station in 1981.