STAFF REPORT KHI: The government of Pakistan has decided to convert all the existing and new power plants on the specification of Thar coal versus earlier plan of converting these on imported coal.

This decision is in line with the Memorandum of Understanding signed between Pakistan Electric Power Company (PEPCO) and SECMC, whereby it has been agreed after the approval of the feasibility report, PEPCO would sign coal supply agreement with SECMC. Total foreign exchange savings for 4000 MW of Thar coal based power plants are estimated at more than $50 billion for life of the project.

SECMC has completed the feasibility study on Thar Coal project, confirming the technical, commercial and environmental viability of the project, says an official closed this development.

The companys 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 Mining Project matches well with GENCOs power project development at Jamshoro.

Pakistans existing power generation mix with 40 percent reliance on imported furnace oil is not sustainable as reflected in countrys inability to utilise 100 percent of its power generation capacity due to lack of funds for furnace oil purchase.