AsiaNet-Pakistan Premier Editorial Content and Press Release Distribution Service
Karachi, June 26, 2012 (PPI-OT): Karachi Electric Supply Company (KESC) has signed a Joint Development Agreement (JDA) with Sindh Coal Energy Limited (SCEL) and Oracle Coalfields PLC (Oracle – a UK based company engaged in coal exploration, mining and production) in order to develop a coal based power plant and utilize the indigenous Thar Coal reserves for producing electricity.
According to the Alfalah Securities Limited, agreement, the three parties would join hands for the development of a mine-mouth coal-powered generation facility at Block VI Thar Coal fields, having an initial capacity of 300 MW and can go up to 1,100 MW. KESC would be ensured a long term fuel supply from SCEL at competitive prices where SCEL would itself own and operate the coal mine integrated with KESC’s minemouth power plant.
SCEL and Oracle have also completed a feasibility study for the development of project while KESC is short-listing leading international firms for the design of the power plant. The agreement signed between the three parties is an important step in averting acute shortage of electricity in the longer run, where production of electricity from coal would be much cheaper than the costly furnace oil thus reducing inflation across the board.