Despite clear instructions of Mr Yousaf Raza Gilani PM of Pakistan, the finance ministry has not yet committed any funds for providing much needed boost to the Thar coal project.
Dr Samar Mubarakmand and his team gave a detailed briefing to Adviser to Prime Minister on Finance Dr Abdul Hafeez Shaikh on available options and financing required to get maximum benefits from coal reserves but could not get any words on release of funds.
Just a day earlier, the premier while chairing a meeting of the Council of Common Interests the highest constitutional body to resolve federal and provincial matters had directed the finance ministry to give top priority to arranging funds for the Thar coal project because of it being an important national project for power generation.
The options tabled in front of the top economic managers included diesel production with the help of coal costing a mere USD 40 per barrel, power generation at PKR 4 to PKR 5 per unit and production of 2.2 billion cubic feet of gas per day with an investment of USD 1.2 billion. Currently, the country’s total gas production is 4 billion cubic feet per day against demand of 5.5 billion cubic feet.
Sources said that as a delaying tactic, the Planning Commission raised the issue of ownership arguing that the central government should not invest in the project as the resources belong to the provincial government.
Block-V of Thar allocated for coal gasification has reserves of 1.4 billion tonnes of coal which are only 0.8% of the total assessed coal reserves in the Thar desert. Various geological surveys have put total reserves at 175 billion tonnes.
The government has approved the underground coal gasification project at an estimated cost of PKR 9 billion and initial experiments have proved successful. The project which started under the supervision of Dr Samar Mubarakmand member science and Technology of Planning Commission is facing delays due to the finance ministry’s reluctance to provide funds.
An official on condition of anonymity said that no decision has yet been taken on the release of funds for the project. In addition to raising financing issues, Mr Mubarakmand presented six options to the finance adviser to achieve better use of the coal reserves.
Mr Mubarakmand said that the country could produce diesel, car fuel, fertiliser, kitchen gas, electricity and plastic by using the huge coal reserves. Each option had a price tag and it was up to the government which option it picked.
An official said that the country could produce coal powered electricity at PKR 4 to PKR 5 per unit against power generated at PKR 12 to PKR 13 per unit by using expensive furnace oil. Similarly, the cost of fertilizer production can also be brought down with the help of gas to be produced through the underground gasification technique.
(Sourced from Express Tribune)
