The government has decided to use Thar coal in thermal power generation in future and the existing coal based projects.
The government has decided to use Thar coal for coal-based power generation and design all conversions of existing and construction of new power projects on Thar Coal specifications in the country in future.
This landmark policy decision was taken at a meeting of Thar Coal and Energy Board with Prime Minister Raja Pervez Ashraf in Islamabad on Wednesday.
The meeting was informed that Sindh Coal Mining Company and Engro Corporation are working on an integrated Coal Mine and Power Project with an estimated cost of one point three billion dollars at Block-2 of Thar Coal Project for mining of six point five million tons of coal per annum. They will also set up a power plant of 1200 MW.
The Prime Minister also decided in principal to provide sovereign guarantee to Sindh Engro Coal Mining Company‚ a joint venture of Government of Sindh and Engro Power Gen. He directed the Ministry of Finance to arrange the necessary sovereign guarantee for the company.
The Government of Sindh had requested the Federal Government that conversion of existing eight hundred MW and new six hundred MW power Plants at Jamshoro be designed on Thar Coal specifications.
The Prime Minister directed the Ministry of Water and Power to sign agreements within a week for Asian Development financed conversion of the existing eight hundred MW and new six hundred MW Thermal Power Project at Jamshoro.
Addressing the meeting‚ the Prime Minister said that today we have laid the foundation of an Energy policy which is based on our indigenous resources and would lead to savings of huge Foreign Exchange which are presently being spent on import of fossil fuels to run Thermal Power Plants.
The Prime Minister expressed the hope that these decisions will herald a new beginning and lay the foundation for sustainable socio-economic development in the country.
Thar Coal Field are estimated to have reserves of one hundred seventy five billion tons‚ sixty eight times higher than Pakistan’s total Gas reserves.