KARACHI, March 4: The Sindh Assembly was informed on Friday that four ongoing projects of coal-fired power plants in Tharparkar would produce 2,300 megawatts over a period of four to five years.This was stated in response to various questions asked by the members of the provincial assembly during the questions hour. In the absence of Chief Minister Syed Qaim Ali Shah who also holds the portfolio of the mines and mineral department, Law Minister Ayaz Soomro answered various supplementary questions of the members.

Responding to a question of Bilqees Mukhtar, the law minister said that four companies were executing the coal projects with a total cost of $4.7 billion.

Giving the details in the written reply, the minister said that one of these companies — Sindh Engro Coal Mining working at Thar Block-II — was investing $3.5 billion to produce 1,200 to 2,400 MW. M/s Oracle Coal Mining Company was investing $450million to produce 300 to 1,100 MW at Thar Block-VI; M/s Couger Energy was investing $600million to produce 400 MW at Thar Block-III while UCG (underground coal gasification) Projects was investing $150 million for producing 100MW, he added.

In response to a question asked by MPA Heer Ismail Soho, the house was told that there were nine developed and delineated blocks in the Thar coal field covering an area of 763 square kilometres. Of them, five coal blocks had been allocated to M/s Sindh Engro Coal Mining Company, M/s Couger Energy Limited (UK) , M/s Bin Daen Group of the UAE, Planning Commission of Pakistan and M/s Oracle Coalfields PLC, UK. Besides, the Coal & Energy Development Department was in the process of offering three more developed blocks in Thar for investment, he said.

In response to the question asked by Humera Alwani, the house was informed that as a result of joint venture between the Sindh government and M/s Engro Powergen with a investment ratio of 40:60, a company Sindh Engro Coal Mining Company had been established. In the first phase, a 1,200MW coal-fired power plant would be established and at a later stage the company was to develop capacity of coal mine from 6.5 MT to 22.5 MT and consequently would establish 4,000MW power generation plant for 60 years.

An initial investment of $1.5 billion for mining and $2.5 billion for power plant would be made. The Sindh Engro Company recently completed the bankable feasibility study of a 6.5 MT annual coal mining project in a record period of eight months, which would supply coal to 1,200MW power plant to be set up by the Engro Pakistan Limited. In response to a question by Arif Mustafa Jatoi, the assembly was informed that a joint venture proposal with the ratio of 40:60 with M/s Al-Abbas Group was under consideration for establishment of 300MW power plant and washing plant at the mine mouth in Badin. In pursuance of a memorandum of understanding with M/s Al-Abbas Group, a 100-sq-km area for each activity was allotted for exploratory work. M/s Al-Abbas Group has to prepare feasibility for establishment of 300MW power plant. The total cost will be 500 million Euros including 150 million Euros for coal mining and 350 million Euros for the power plant.

The electric tariff would be determined by the National Electric Power Regulatory Authority, which should be within the range of 11 to 11.50 cents per kWh.

Responding to a question by Nusrat Sehar Abbasi and Ms Soho, the house was told that at present there was no Central Rescue Station in Sindh. The government intended to establish a first station at Thario Halepota near Islamkot in Tharparkar to provide rescue operation at the time of any accident at mines for the recovery of men and material and to provide rescue training to 500 mine personnel, etc.

In response to a question by MPA Rasheeda Panhwar, the house was further informed that a scheme for establishing the Rescue Station & Occupational Disease Detection Centre at Larkana was approved in 2007 and the project would cost Rs207.932 million.

In response to another question of Ms Soho, the house was further informed that five leases were granted to different parties for excavation of precious granite stone in Karoonjhar mountain area of Tharparkar at the rate of Rs20 per acre per annum while Rs70 per tonne was charged as the royalty on the production dispatch.

The house was further informed that the excavation of granite by breaking through gunpowder was not allowed nor any reports received regarding the use of gunpowder and explosives.

The MPA wanted to know the situation as according to her 70 per cent granite was spoiled due to the use of the explosives.

In response to another question of the same member, the house was informed that China Clay had been found in Tharparkar and 18 washing plants had been established there.

The assembly was informed that there was no centre for the training of miners in the province.

In response to a question by Mr Jatoi, the house was told that 7,000 acres of limestone for establishing a cement factory was granted to M/s Indus Cement for 30 years on Nov 4, 2006. The party had to install a cement plant in five years and in case of failure its performance guarantee of Rs1.5 million and other amounts charged so far would be forfeited and the mining lease cancelled.

Answering a question of Ms Abbasi about theft of sand and gravel (reti and bajri) in Karachi, the house was informed that the directorate general of the mines and minerals department had initiated serious efforts to curb the illegal lifting of sand and gravel in the banned and open areas.

It was also submitted that due to intensified police patrolling, there was no report of such theft cases.

MPA Muzammil Qureshi wanted to know the procedure to sell sand and gravel in Karachi by the directorate general of the mines and minerals department. The house was informed that the directorate did not sell, but on the contrary the department granted exploration and mining permits of sand, gravel and other minerals.