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Thar coal to be utilised for power generation

Sindh Engro Coal Mining Company (SECMC) is all set to sign agreement with the power generation companies to supply them Thar coal following government’s decision to convert generation plants on to indigenous coal, said SECMC in a statement on Monday. “In a historic decision, the government of Pakistan has now decided that a coal off-take agreement would be signed between the Generation Company and SECMC,” said the statement.

Earlier, the government called for converting such plants on imported coal, the company said, adding that the previous decision was reviewed after realising that it would keep the import bill of the country on the higher side.

Pakistan generates around 40 percent of total power from imported furnace oil. The practice is not seemed sustainable due to the lack of funds for the oil purchases, it said.“Development of power plants on imported coal will merely shift reliance from one imported energy source to another with inherent international pricing risks.”

SECMC’s mining project, which will cost $1.3 billion, is expected to take less than four years for completion. Failing which, the company will be liable to pay the liquidated damages. “The timeline of the mining project matches well with GENCO’s power project development at Jamshoro.”

GENCO is planning to convert its Jamshoro’s oil-based power plants and establish new power plants at the same site.

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