KARACHI, July 23: President Asif Ali Zardari said on Monday that the government would facilitate local and foreign companies in their plans to make investment in the energy sector.

Presiding over a meeting on the performance of Thar Coal Development Board, he said huge natural resources needed to be explored and harnessed to meet energy requirements.

The president directed the ministry of water and power to advise all stakeholders to ensure that the retrofitting of oil-based power plants should be done in such manner that the plants became compatible with the specifications of Thar coal.

Sindh Chief Minister Qaim Ali Shah, Finance Minister Dr Abdul Hafeez Sheikh, MNA Rubina Saadat Qaimkhani, Water and Power Secretary Zafar Mehmood, Provincial Finance Minister Murad Ali Shah, Irrigation Minister Saifullah Dharejo, Revenue Minister Jam Mehtab Dahar and senior officials of the Thar Coal project Rizwan Memon and Mohammad Sohail Rajput attended the meeting.

Mr Sohail Rajput informed the meeting that work in four blocks of Thar coalfield was in advanced stage. He said Global Mining of China, Sindh Engro Coal Mining Company and Oracle Coalfields of Britain had completed feasibility for projects of open-pit coalmining. A pilot project of underground coal gasification was also in progress under the supervision of Dr Samar Mubarakmand, he said.

The meeting was informed that Global Mining was scheduled to start mine development activities in Block-I by October, which will lead to mine construction of 5mtpa by the end of 2015 and power generation of 900MW by 2015-16. The total composite cost of the project is $3 billion. Oracle Coalfields would initiate mine development phase for its $860 million mining and power project by early 2013.

The president was informed that Sindh Engro Coal Mining Company was pursuing to achieve the financial close for its $3 billion coalmining and power generation project at Block-II of Thar coalfield.

About the underground coal gasification, it was informed that the Planning Commission had conducted project appraisal in June and decided that the pilot project comprising one gasifier would be operationalised for generation of 8-10MW of electricity within 10 to 12 months.

The meeting was informed that Rs1.8 billion would be provided to cover the cost of gas purification plant, power generation units and establishment/O&M charges for one year.—APP