KARACHI, Nov 2: A general consensus obtained from the participants of the two-day international symposium on “Sindh Coal (Lignite) Mining: Challenges and Success” was that a realistic tariff for Thar coal is 9 to 10 cents. On conclusion, the symposium on Wednesday urged for declaring a realistic and flexible coal tariff based on original cost of different coalfields.

The symposium released a package of a dozen of recommendations on Friday after holding two full day proceedings on Tuesday and Wednesday in which 22 presentations were made by the Pakistani and international experts.

It called upon the federal government agencies — Nepra, PPIB, Wapda — to realise development and gainful exploitation of coal energy is not only in interest of Sindh but for entire Pakistan.

All these federal agencies were reminded that foreign and local investment was made in private power projects after 1994 only when an up-front tariff structure was set in place. Therefore, it is imperative to announce a tentative upfront tariff structure for coal-fired power projects.

Another recommendation urges the Private Power Investment Board (PPIB) to authorise Sindh government for issuing licences for setting up of 200 megawatts coal-based power projects.

Under present policy, the provinces have been allowed to set up 50 megawatts of power stations based on waterfalls and run of canals. But the participants of the symposium felt that a 50-megawatt coal-fired power project is not feasible.

The Sindh government has been urged to approach the adviser on energy for preparation of an up-front lignite tariff and a tariff schedule.

The adviser should be asked to convene immediately a meeting of the Technical Committee of the Task Force on Thar Coal as instructed by President Mushsrraf in a recent meeting.

The representatives of the Federation of Pakistan Chambers of Commerce and Industry who participated in the symposium suggested the KESC and Wapda should undertake to purchase electricity from the private coal-fired power projects.

While the federal and Sindh governments have been asked to facilitate and accelerate coal mining in the province and particularly in Thar a suggestion has been made to commence water exploration work in Thar.

Foreign participants have proposed that underground gasification to be a better alternate now being practiced in many countries. The symposium recommended for quick implementation of this process.

A reference has been made to an observation of a German expert Dr Ing. Gotz V. Justus who disclosed that 175 billion tons of coal reserves in Thar represent the biggest coal reserve in Asia. He found Thar lignite better in quality than that of lignite in Germany and many other states where it is used to generate electricity.

The Nepra acting chairman in his presentation disclosed that almost 16 per cent of public sector development programme was being used as subsidy for the electricity distribution companies. The oil prices kept on fluctuating affecting production.