Business

Two Thar coal-based power projects approved

Government focuses on domestic energy resources in the long run

Our Correspondent May 03, 2016

PHOTO: REUTERS

ISLAMABAD: The Private Power and Infrastructure Board (PPIB) approved on Tuesday two private sector power projects based on Thar coal.

The projects included a 330-megawatt plant to be set up by Hub Power Company in block-II of Thar and another 330MW plant in the same block that would be developed by Thal Power (Private) Limited.

HUBCO to set up 330MW coal power plant in Thar

Presiding over 105th meeting of the PPIB, Water and Power Minister Khawaja Muhammad Asif stated immediate electricity needs of the country were being met through a mix of fuels, but for medium to long-term requirements, the government was giving priority to consumption of domestic resources like hydroelectric power, coal, wind and solar energy.

He stressed that huge deposits of 175 billion tons of coal had been sitting idle in Thar for a long time and for the first time in the country’s history the government had mobilised resources to utilise it for power generation.

“Thar coal can be highly instrumental in injecting a big chunk of cheap electricity into the system. This asset is attracting a large number of domestic and foreign investors who are interested in setting up power plants,” he said.

The PPIB appreciated the achievement of financial close by the 660MW Engro Powergen Limited last month that had now started construction activities. This is the first power project based on Thar coal that has come to this advanced stage.

China, Pakistan ink $820m Thar coal agreement

PPIB Managing Director Shah Jahan Mirza spoke about the progress on ongoing power generation projects being handled by the PPIB with particular emphasis on schemes undertaken under the China-Pakistan Economic Corridor (CPEC) programme. At present, the PPIB is facilitating 10 projects of 11,000MW under the CPEC.

Published in The Express Tribune, May 4^th, 2016.

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COMMENTS (2)

Rustam | 7 years ago | Reply @Xcoalman: - By your name implies that you have provided information based on your hands on experience. However, it is not believable that coal mining and power plant projects are being worked out without any feasibility studies. Could you please add some more information to establish the authenticity of the statements made by you.

Xcoalman | 7 years ago | Reply Thar coal can be highly instrumental in injecting a big chunk of cheap electricity into the system . The vast majority of Thar coal is under a deep layer of water making it uneconomical to mine - the portion that is economical to mine has such low BTU content that you have to build an on-site power plant (takes more BTU's to move the coal than it's worth) . And lets not forget that Thar isn't connected to Pakistan's main electrical grid so that has to be financed/built before the electricity can benefit the public. . It's unlikely that Thar is going to provide "cheap" anything - the fact that none of the std international coal producers would finance/touch the project should say something. That fact that China needs a "no bid" combined with Pakistan govt guarantee says something as well.

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