Production of 660MW electricity from Thar coal to start by 2017 end: minister

Published May 5, 2015
ALi said the government is committed to utilise resources for power generation. —INP/File
ALi said the government is committed to utilise resources for power generation. —INP/File

ISLAMABAD: The commercial production of 660MW of electricity from Thar coal-fired power generation plant will start by December 2017, Minister of State for Water and Power Abid Sher Ali said on Monday.

Two basic documents of the first power plant fuelled by Thar coal — Implementation Agreement (IA) and Power Purchase Agreement (PPA) of 660MW — have been signed by the Private Power and Infrastructure Project (PPIB), National Transmission & Dispatch Company (NTDC) Limited and M/s Engro Powergen Limited (EPGL).

Know more: Experts doubt Dr Samar’s Thar coal power idea, PA told

The IA was signed by Shah Jahan Mirza, Managing Director of the PPIB, and Shamsuddin A. Shaikh, CEO of EPGL. The PPA was signed by Engineer Mohammad Arshad Chaudhry, MD of NTDC, and Shamsuddin A. Shaikh, CEO of EPGL.

Earlier, it was estimated that power generation would start by mid 2018.

As per the signed documents, Engro Powergen would develop a project of 660MW utilising indigenous Thar lignite coal to be supplied by the Sindh Engro Coal Mining Company which is the lease holder of Thar Block-II.

It will be the first project in the country in which Thar coal will be utilised for power generation. Its development will reduce the country’s dependence on the costly oil-based power generation, thus saving millions in foreign exchange.

Abid Sher Ali said the abundant coal resources in the country were estimated at around 186 billion tons out of which 175bn tons were found in Thar alone. He said the government was committed to utilising these resources for power generation.

Talking to journalists on the occasion, he said the Thar Coal would become energy capital of Pakistan in next few years. It is priority of the government to develop Thar coal and utilise it on the commercial basis.

Answering a question, the minister said that due to effective measures taken by the government, the duration of loadshedding had come down.

He said concrete steps were being taken to reduce the transmission and distribution losses. Recovery had been improved and the issue of circular debt was being resolved, he added.

Published in Dawn, May 5th, 2015

On a mobile phone? Get the Dawn Mobile App: Apple Store | Google Play

Now you can follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

The Musharraf enigma
Updated 06 Feb, 2023

The Musharraf enigma

The Musharraf era holds numerous lessons for Pakistan’s ruling elite, civilian and military.
Staying neutral
06 Feb, 2023

Staying neutral

THE Election Commission of Pakistan has what is perhaps one of the most thankless jobs in the country. The countless...
Wikipedia ban
06 Feb, 2023

Wikipedia ban

THE country was back in a familiar, dark place last week when the PTA blocked Wikipedia over the charge that it...
IMF’s firm stance
Updated 05 Feb, 2023

IMF’s firm stance

Pakistan needs to complete the review to stave off a default as well as to unlock inflows from other multilateral and bilateral lenders.
Grotesque bigotry
05 Feb, 2023

Grotesque bigotry

FREEDOM to profess one’s faith is guaranteed by the Constitution of Pakistan. However, for the country’s Ahmadi...
Kashmir reflections
05 Feb, 2023

Kashmir reflections

ASIDE from Kashmir Day, which the nation is observing today as an official holiday, there are a number of other days...