The proposed 2x300MW power plant may achieve financial close in 2014 and is expected to start power generation in three years from the date of financial close. ILLUSTRATION: JAMAL KHURSHID
According to a statement released after the MoU signing, the companies believed the agreement would pave the way for the much-needed shift of the energy mix to the abundant domestic alternative energy resource in Pakistan.
They vowed to attract new investments from national and international entrepreneurs in the energy sector.
Sindh Engro Coal Mining Company CEO Shamsuddin Shaikh, while talking to The Express Tribune, said the MoU would dispel the impression that Thar coal was not a feasible source of energy.
“The inclusion of financially strong local partner companies will attract more players to Thar coal,” he said, adding the partnership of local independent power producers was important as the power companies highlighted the importance Thar coal held for future energy needs of Pakistan.
The MoU and project development are in line with the government’s vision of promoting domestic fuel-based projects to create a sustainable energy future for the country, according to the statement.
The proposed 2x300MW power plant may achieve financial close in 2014 and is expected to start power generation in three years from the date of financial close.
The alliance will also encourage various international lenders to invest and provide financing for this mega project.
Thar coal can also be utilised for coal gasification for fertiliser and petrochemical industry opening a new avenue for industries, the statement said.
SECMC is a lease-holder of Thar block II and plans to construct 3.5 million tons per annum coal mine to feed the mine mouth power plants.
Thar coal being one of the biggest unexploited energy reserves with over 175 billion tons of coal is adequate to cater to the country’s energy needs for next 100 years.
Published in The Express Tribune, December 20th, 2013.
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@unbelievable: ahahah crazy, this project is backed up by international investors who don't even spend a penny if they have a shred of doubt in their mind.
the reason behind the delay is lack of infrastructure, interest and who mines coal when he get good clean and cheap oil from international market !
@ unbelievable . It is really unbelievable that , even after leading companies have signed MoU for generating 600 MW of Electricity, you are still having doubts.... Big companies don't invest their money without any basis.. They have confirmed that Thar Coal is economically feasible and can be used for producing Electricity....
Rubbish. If Thar Coal were economically feasible it would have been producing energy long ago. Mining coal is one of the oldest businesses around and there are plenty of experienced International Coal Companies that would be extracting coal from Thar right now it it made any economic sense.