PM orders release of funds for Thar power project

05 Jan, 2012

Dr Samar Mubarak Mand informed the Prime Minister that in December 2011, a very significant breakthrough occurred in (UCG) project whereby coal gas was successfully produced by ignition of coal 600 feet below ground.

This blue pollution-free flame of the gas burns in a flare and illuminates the dark night skies of Thar, he added.

To complete power generation phase of the project, Dr Samar Mubarak Mand requested the Prime Minister to arrange immediate funding of Rs. 2.4 billion this year and the remaining 7.8 billion during the next financial year so that the country can benefit from the generation of 100 MW of electricity before the end of 2013.

The Prime Minister directed the Ministers of Finance, Petroleum and Natural Resources to have a meeting at the earliest and arrange financial resources required for the project without further delay.

Dr Samar Mubarak Mand also discussed the current situation of deficiency of gas in the country in detail.

He said that fertilizer plants and the industrial sector consumed 43% of the total gas in the country.

Dr Samar Mubarak Mand said that he would prepare a presentation on coal gas to meet the demand of two sectors of Pakistan's economy by the end of this week or early next week, which will be presented to the Ministries of Finance and Petroleum. The Prime Minister may also attend the meeting, he added.

He said that the project was expected to cost $ 250 million approximately and the gas from the project, when approved, will begin to flow into the national system as early as 2014.

He, however, added that if the process of approval and financing was handled on fast track basis and the project commences within next three months, the outflow of gas can start even at the end of 2012 or early 2013.

Copyright APP (Associated Press of Pakistan), 2011

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