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Thar coal to be utilized for power generation
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Thursday, 11 Oct 2012

The News reported that Sindh Engro Coal Mining Company is all set to sign agreement with the power generation companies to supply them Thar coal following government’s decision to convert generation plants on to indigenous coal.

In a historic decision, the government of Pakistan has now decided that a coal off take agreement would be signed between the Generation Company and SECMC.

Earlier, the government called for converting such plants on imported coal adding that the previous decision was reviewed after realizing that it would keep the import bill of the country on the higher side.

Pakistan generates around 40% of total power from imported furnace oil. The practice is not seemed sustainable due to the lack of funds for the oil purchases. Development of power plants on imported coal will merely shift reliance from one imported energy source to another with inherent international pricing risks.

SECMC’s mining project which will cost USD 1.3 billion is expected to take less than 4 years for completion. Failing which, the company will be liable to pay the liquidated damages. The timeline of the mining project matches well with GENCO’s power project development at Jamshoro.

Source - The


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