China National Machinery Import and Export Corporation (CMC) has submitted technical study on 375 megawatts (MW) coal-based power plant to Sindh Coal Authority (SCA).
The submission of technical study shows that the Chinese company is ready to start the project of generating 375 megawatts (MW) electricity from lignite at Sonda-Jherruk, Thatta, source told Business Recorder on Tuesday. They said that CMC had also visited several operational thermal power plants, including Hub power plant to assess the production capacity.
Sources said that a committee, comprising high level officials from the SCA, Geological Survey of Pakistan (GSP) and Ministry of Petroleum and Natural Resources (P&NR), would deliberate upon the technical study to affirm its authenticity.
After the committee's approval, the CMC would apply for tariff to sell the electricity to government authorities, sources added. Energy experts believe that the government would offer an acceptable power purchase tariff so that the company could go ahead with the project.
Recently, another Chinese company, Shenhua group, had left the 1,000 MW power projects worth one billion dollars at Thar as the company and the government failed to agree to the tariff formula. Agreement with the CMC on tariff would be a great achievement to push other foreign and local companies to come forward, experts said.
Earlier, the CMC had submitted its feasibility study to the government that identified positive results for materialising electricity generation from coal. The study identified that the coal mining capacity of the deposit is 1.2 million tonnes per year, which is enough for years to feed power plants.
The government, later, designated the Board of Investment (BoI) to provide one-window services to the CMC for development of coal- based power plant. Prime Minister Shaukat Aziz asked the BoI to remove all impediments in the way of coal- based power projects, which fall within the regulator's framework.
The Prime Minister also asked the authorities to ensure the development of power project on fast track basis. In further development, the Advisor to the Prime Minister on Energy chaired a meeting in Islamabad and formed a committee to monitor the progress on the implementation of the project.
The committee included the following officials: BoI Secretary will be the Chairman, while the following will be the members: Managing Director of Private Power Infrastructure Board, Islamabad; member, (Power), Water and Power Development Authority (Wapda), Lahore, member of concerned National Electric Power Regulatory Authority (Nepra), Islamabad; Secretary, Mine and Mineral Development Department Sindh; Joint Secretary of concerned Economic Affair Division, Islamabad; Director General (Mineral), Ministry of Petroleum and Natural Resources, Islamabad ; representative of CMC; and Director General (AM) BoI, Islamabad (member Secretary).
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