ISLAMABAD, Oct 7: The federal government on Thursday directed Wapda to construct a 500-KV transmission line at a cost of Rs5.5 billion for 600-mw power dispersal of the Thar Coal Power Project.

It also constituted a seven-member committee headed by Sindh Minister for Mines and Mineral Development and directed it to visit China next week to negotiate tariff and other matters relating to the project with the Chinese Shenhua group.

The committee comprises representatives of Wapda, ministries of water and power and petroleum and natural resources and Private Power and Infrastructure Board (PPIB). The decisions were taken at a meeting presided over by Federal Minister for Water and Power Liaquat Ali Jatoi. The meeting reviewed the progress of the project.

Sources said the Chinese company was facing difficulties in ground work and infrastructure problems, and had expressed its inability to continue the work. Pakistan's Ambassador to China had recently written to the government that withdrawal of the Chinese company from the Thar project would be a setback for the country.

On this, the prime minister had asked the water and power minister to resolve the problems and get the project going. Foreign Affairs Secretary Riaz Khokhar was specifically invited to the meeting for foreign office input and first-hand view of the situation.

The power minister said the project was of great importance to Pakistan that has been planned to be developed at an estimated cost of more than $1 billion keeping in view the future energy requirements.

He said the project should be completed within the prescribed time. He said the country would have to meet the future energy requirements through its indigenous resources and Thar coal project would be very important in this direction.