Thar coal gasification may be delayed

Karachi: The Ministry of Finance (MoF) has been unable to allocate PkR 5.703 bn for the Thar coal gasification project which is expected to get delayed.

According to Alfalah Securities Limited, the project was designed of two 50MW power plants whose cost was estimated to be PkR 8.898 bn by Syngas for which the Ministry was asked to allocate PkR 5.703 bn in FY12 while, the remaining PkR 3.193 bn in FY13 which would be used for purchase of steam and gas turbines to generate electricity. Currently, the ministry has only released PkR 5 mn and another PkR 900 mn has been approved for the project. Major component of the project requires a lump sum amount of PkR 5.703 bn for purchase of steam and gas turbines and cannot be purchased in parts. However, the government had allocated only a negligible amount of PkR 5 mn in the current Public Sector Development Authority (PSDP) and mounting economic crisis would further delay the project.

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