First 660 MW Thar coal fired power plant implementation and power purchase agreements signed, generation expected by end of 2017

Islamabad, May 04, 2015 (PPI-OT): Implementation Agreement (IA) and Power Purchase Agreement (PPA) of 660 MW first coal fired power plant on local Thar coal singed today by PPIB, NTDC and M/s Engro Powergen Limited (EPGL) at the Ministry of Water and Power today.

Minister of State for Water and Power, Mr. Abid Sher Ali, Secretary Water and Power, Mr. Mohammad Younus Dagha and other senior officials of PPIB, NTDCL and Ministry of Water and Power witnessed the ceremony. The IA was signed by Mr. Shah Jahan Mirza Managing Director PPIB and from the company’s side it was signed by Mr. Shamsuddin A. Shaikh, CEO of EPGL, while the PPA was signed between Engineer Muhammad Arshad Chaudhry, MD NTDCL and Mr. Shamsuddin A. Shaikh, CEO of EPGL.

According to details, Engro Powergen would develop a project of 660 MW (2 x 330 MW each) utilizing indigenous Thar lignite coal to be supplied by Sindh Engro Coal Mining Company which is the lease holder of Thar Block-II. The project is the first and pilot project to utilize Thar coal for power generation and its development will reduce Pakistan’s dependence on costly oil based power generation thus saving millions of dollars of foreign exchange. It is expected that the first unit of the Project will start producing electricity by December 2017.

The State Minister for Water and Power Chaudhry Abid Sher Ali said the abundant coal resource largely remains unexploited till date are estimated at around 186 billion tons out of which 175 billion tons are found in Thar alone. He said that present government is committed to utilize these resources for power generation. Talking to the journalists on the occasion, he said that Thar Coal would become Energy Capital of Pakistan in next few years. He said that it is the priority of the Government to develop Thar coal and utilize it on commercial basis.

To a question, the State Minister said that due to effective measures taken by the present government, the duration of load shedding has come down. He said that concrete steps are being taken to reduce the transmission and distribution losses. Recovery has been improved and circular debt issue is being resolved.

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Haji Ahmed Malik
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