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Plants on Thar coal specification

October 09, 2012

KARACHI, Oct 8: The government has decided to convert all existing and new power plants on the specification of Thar coal versus an earlier plan of converting these on imported coal.

The government has now decided that the coal off-take agreement would be signed between Generation Company (GENCO) and the Sindh Engro Coal Mining Company (SECMC).

This decision is in line with an MoU signed between Pakistan Electric Power Company (PEPCO) and SECMC at the CM House last year, whereby it was agreed that after the approval of the feasibility report, Pepco would sign a coal supply agreement with the SECMC, says a press release. Pakistan’s existing power generation mix with 40 per cent reliance on imported furnace oil is not sustainable as reflected in country’s inability to utilise 100 per cent of its power generation capacity due to lack of funds for furnace oil purchase.