The News reported that Pakistan will use international competitive bidding to generate power from its coal reserves, estimated at 185 billion tons.
Dr Akhtar Awan member of Planning Commission said that bids for setting up coal fired power plants will be invited after 2 to 3 months, by which time the prerequisite procedure is expected to be completed. Awan said that previous plans to produce electricity using vast coal reserves available in Pakistan did not materialize due to the involvement of high costs, which require a similarly higher tariff. He added that “We should not worry about the cost now and Thar Coal Mining Company has been established to undertake production of 1000MW” Awan said, that China Machinery Import Export Corporation wants to mine coal from Sonda Jerrukh in Sindh for producing power.
They have submitted a feasibility study and negotiations will soon start with NEPRA for determination of the tariff. He added that “CMC has asked for 9.7 cents per kWh, but I will make sure that the final tariff remains between 8.5 to 9 cents.” Sayed Abbas Ali Shah former director general of Sindh Coal Authority said that Pakistan will have the first mechanized coal mining project, if the deal with CMC goes through. He added, that the real costs lay with the excavation of coal. (SteelGuru)