Accord signed for first Thar coal-based plant

One unit of 660MW project will start power production by Dec 2017.

ISLAMABAD: The Private Power and Infrastructure Board (PPIB), the National Transmission and Despatch Company (NTDC) and Engro Powergen Limited (EPGL) signed an implementation agreement and a power purchase accord for the first power project based on Thar coal at the Ministry of Water and Power on Monday.

The implementation agreement was signed by PPIB Managing Director Shah Jahan Mirza and EPGL CEO Shamsuddin A Shaikh while the power purchase deal was inked by NTDC Managing Director Engineer Mohammad Arshad Chaudhry and EPGL CEO Shaikh.

According to details, Engro Powergen will develop a 660-megawatt project, having two plants of 330MW each, utilising Thar lignite coal, which will be supplied by Sindh Engro Coal Mining Company, the lease holder of Thar block-II.

This is the pilot project that will utilise Thar coal for power generation and its development, will reduce Pakistan’s reliance on costly oil-based power production and save millions of dollars in oil imports. It is expected that the first unit of the project will start producing electricity by December 2017.

“The abundant coal reserves, largely unexploited to date, are estimated at around 186 billion tons, of which 175 billion tons are found in Thar alone,” said Abid Sher Ali, State Minister for Water and Power. “Thar coal will become the energy capital of Pakistan in the next few years.” 

Published in The Express Tribune, May 5^th,  2015.

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