Running power project on Thar coal: KE shifts onus of potential delays to Power Div

ISLAMABAD: K-Electric (KE) appears to be shifting the onus of any potential delays in the conversion of the Jamshoro Power Plant to Thar coal onto the Power Division, citing the lack of progress on key administrative actions.

Despite KE having a consultant on board for the Bankable Feasibility Study (BFS), the Power Division has yet to issue a notification for the reconstitution of the oversight committee, a step KE deems critical for moving forward.

In a letter dated March 12, 2025, the Power Division inquired about KE’s progress in on-boarding a consultant for the study. In response, KE’s Chief Executive Officer Syed Moonis Abdullah Alvi reiterated the company’s commitment and confirmed that the consultant selected by the Power Division’s committee has been formally awarded the contract.

KE wants evaluation of proposal to convert Jamshoro plant to Thar coal

Alvi emphasised that for the study to proceed efficiently, key approvals and logistical requirements must be met. These include securing clearance from the State Bank of Pakistan (SBP) for foreign remittances related to the consultant’s remuneration and ensuring access to essential project data.

To facilitate the process, KE has already prepared and shared official correspondence requiring committee approval, including:

(i) Letter to Thar Coal Energy Board (“TCEB”) to solicit information regarding the prospective allocation of Thar Coal in relation to mine expansion, the Levelized and Year-Wise Tariff of Thar Coal, the earliest availability of Thar, Total Foreign Component of the Thar Coal Tariff and Total Cost of Mine Expansion;

(ii) Letter to Pakistan Railway Freight Transportation (PRFTC) to request for information regarding Railway track access, Railway tariff, Rail traffic/ logistics study data, the environmental and social impact assessment pertaining to both new and existing railway tracks and No Objection Certificate (NOC) for the entire track; and

(iii) Letter to SBP to request for approval of foreign remittances required for the project.

Moreover, as agreed and discussed in the earlier meeting of the Committee and the progress review meetings held under the leadership of the Federal Minister for Power, KE has requested to take the necessary actions with regards to the following requirements, as this will ensure the proper documentation of the entire proceedings of the Committee that are carried out:

(i) issuance of official notifications for the reconstitution of the Committee incorporating the updated list of members;

(ii) issuance of final approval by the Chair of the Committee on the agreed minutes of the four meetings conducted by the Committee on November 21 2024, November 28, 2024, January 14 ,2025, and January 22 2025; and

(iii) issuance of the official minutes of the review meeting held under the leadership of Federal Minister for Power on January 28 2025, for which the draft has already been circulated by KE.

Copyright Business Recorder, 2025