Coal-fired power project: tardy local firm gets notice for inaction

The Sindh government has taken serious notice of tardiness and inaction of a local firm on coal-based power project. The Sindh Mines and Mineral Department has issued a show-cause notice to Dadabhoy group, a local company, for inaction in implementing the project according to MoU signed earlier.
Sources told Business Recorder on Thursday that the provincial government had served a notice on Dadabhoy group for not going ahead with the 200 MW power project based on integrated coal at Sonda-Jherruk, Thatta.
The group had signed a Memorandum of Understanding (MoU) with the Sindh Mines and Mineral Department on June 27, 2005 but failed to show progress so far. The MoU was signed by Sindh Minister for Mines and Mineral Development Irfanullah Khan Marwat on behalf of Sindh Coal Authority and Senator Amin Dadabhoy on behalf of Dadabhoy Hydrocarbon Limited.
"If the group failed to satisfy the provincial government with its progress the agreement may be terminated," they said. According to the MoU, Dadabhoy group had planned to set up a 200 MW coal-based power plant with an estimated cost of $400 million in association with North China Power Energy Company Ltd.
About eight MoUs have been signed for coal-based power generating units with local and international companies. But not a single project could be materialised yet, they said. The provincial government was facing criticism over delay in converting coal potential into much-needed electricity generation.
Sindh has 98 percent of total coal deposits of the country, which are about 184.658 billion tonnes. The break-up of deposits in Sindh revealed that Thar possesses 175.506 billion tonnes, Sonda-district Thatta 7.112 billion tonnes, Lakhra in district Dadu 1.328 billion tonnes, Metting-Jhimpir Thatta 0.161 billion tonnes and Badin 0.016 billion tonnes.
Country's power demand is rising annually and on the other hand lesser power generation is aggravating the situation. Therefore, steps needed to ensure uninterrupted power supply for future, sources said. This is highly worrisome and has pushed Sindh government to gear up its efforts to materialise coal-based power projects on priority.
However, two companies ie China National Machinery Import and Export Corporation (CMC) and Hassan Associates have shown progress, sources said. The Board of Investment, recently, had been designated to provide one window operation to CMC to remove of all impediments in the way of establishing coal based power projects.
While, Hassan Associates was issued Letter of Intent (LoI) for setting up 1,000 MW power generating units on integrated coal. The power supply may be start in three years, sources said.