Thar coal reserves to solve power crisis: Adviser

Claims the move will put economy back on track.

KARACHI:

The development of Thar coal reserves is the answer to the current power crisis in the country, according to Sindh Chief Minister’s Adviser on Investment Muhammad Zubair Motiwala.

Addressing members of the Pakistan Business Council, Motiwala said they should put together their financial and entrepreneurial resources to unleash the potential of Thar coal reserves and put the economy back on track.

He said the federal government approved an incentive package for the development of Thar coal reserves, which had been given the status of Special Economic Zone, offering 20.5 per cent internal rate of return to projects which achieved financial close by December 2014.

Coal mining equipment and machinery, including vehicles for site use, were charged zero customs duty, with exemption from withholding tax, special excise duty, federal excise duty, and workers welfare fund for the initial 30 years.

Coal-based power and coal mining projects in Sindh will have the same incentives, as those available to independent power producers.

Published in The Express Tribune, April 26^th, 2011.