The company has planned to produce 3,960MW energy through four 330MW and four 660MW plants. PHOTO: FILE
HYDERABAD:
Some minor hiccups apart, Sindh Engro Coal Mining Company (SECMC) appears positive to complete the coal mining and power production projects on time after it recently got approved the power tariff.
The National Electric Power Regulatory Authority (Nepra) approved 8.57% upfront tariff for the SECMC’s Thar Coal Power Company two days ago, according to the company’s CEO Shamsuddin A Shaikh.
At a press briefing on Saturday, Shaikh said that the first power plant of 330 megawatts (MW) will start production from December 2017. Three more plants of similar capacity will follow after every six months till June 2019.
The company has planned to produce 3,960MW energy through four 330MW and four 660MW plants. The latter will contribute in the subsequent years.
According to the CEO, a sum of $900 million will be spent on the construction of the first two 330MW power plants while an equal outlay of $900 million is required for open pit mining.
Shaikh said the power tariff would be gradually decreased to 5% over a period of 20 years. At the same time the tariff of electricity produced from other resources will keep increasing from the present average of 10 to 12 %.
SECMC, whose 51% shares are owned by the Sindh government and 49% by Engro, inaugurated both the projects on January 31. Shaikh informed that one of the four Chinese engineering, procurement and construction (EPC) contractor has been finalised for the mining work. However, he said the coal tariff is yet to be decided by Thar Coal Energy Board (TCEB). Similarly, for the power plant, three Chinese EPC contracts have been shortlisted.
For laying the transmission line, the matter is being pursued with the federal government’s National Transmission and Dispatch Company (NTDC).
Shaikh said SECMC has prioritised employment for the local people. Up to 4,000 workers, including the managerial, technical and non-technical staff, will be employed when the company attains peak production. “We will ensure that all the non-technical staff is appointed from the local people.”
He informed that a new airport is being built in Islamkot tehsil of Tharparkar and he expects its inauguration by the end of this year. On the corporate social responsibility (CSR) side, the company is investing $20 million from its investment on education, health, livelihoods, skills development and promotion of local art, culture and handicraft programs. This is separate from 2% expenditure on CSR from the profit after tax.
Published in The Express Tribune, May 25th, 2014.
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//pproved 8.57% upfront tariff for the SECMC//
ET its not percent it is CENTS AS IN US DOLLAR CENTS per kW/hr!
Some minor hiccups apart, Sindh Engro Coal Mining Company (SECMC) appears positive to complete the coal mining and power production projects on time . I guess everyone has a different definition of "minor". In this case not having a mine plan, mine contractor, financing, or any of the basic things necessary to start/operate at mine is considered "minor". As far as the power plants go -- they are nothing other than smoke until power rates are established and transmission lines are built - and your a long way from accomplishing either. . Engro plants an article like this about once a month in order to create the image of progress on Thar Coal.