KESC has planned to convert its two units at Bin Qasim to gas from furnace oil to provide low tariff electricity to its consumers. -File Photo

KARACHI: Chief Executive Officer (CEO), Karachi Electric Supply Company Limited, Tabish Gauhar on Wednesday said the KESC has initiated the setting up 560 MW power plant at a cost of dollars 400 million local and foreign investment.

"It will start generation of up to 300 MW next year, whereas this will be fully commissioned by April 2012," he said during a meeting with members of Karachi Chamber of Commerce and Industry (KCCI) here at the Chamber. He was assisted by a team of senior KESC officers.

On KCCI side, Acting President KCCI Talat Mahmood, Chairman of Businessmen Group in KCCI and former president Siraj Kassam Teli, Vice President KCCI Junaid Esmail Makda, former presidents KCCI Anjum Nisar, Haroon Farooki, A.Q. Khalil were prominent.

Tabish Gauhar  said KESC has planned to convert its two units at Bin Qasim to gas from furnace oil to provide low tariff electricity to its consumers. We have also planned to import 200 cmf LNG per day and this will help in reducing our generation cost to Rs 4 to Rs 5 per unit, he said adding that KESC can also generate 30 to 50 MW per day from bio-mass.

“More gas provision to KESC, the lower the tariff we would have,” he asserted.

The CEO KESC also informed that his company entered  into an agreement with a British company, engaged in mining of coal in Block-6 of Thar Coal Field, which will provide coal to KESC for its 300 to 350 MW power plant to be set up there.

Tabish Gauhar maintained that 50 percent of KESC's power generation plants were not operating for want of gas supply.

He    maintained    that following privatisation of KESC, the Company has witnessed a lot of improvement in generation and distribution systems. Local and foreign investment of dollars 210 million    was done over the last two years.

450 MW per day has been added to the Company's power generation, 1000 PMTs and 200 feeders have been installed.

He requested the business community and the people in general to cooperate with KESC in controlling theft and pilferage of power which ultimately will help the company to reduce its operational cost leading to cut down in its tariff.

KCCI and KESC decided to increase liaison for resolution of problems facing members of KCCI regarding KESC.

Earlier, KCCI leaders briefed KESC Chief Executive about the difficulties confronting business community in getting smooth power supply besides alleged wrong billing.