The government has decided that in future only Thar coal would be used for coal-based power generation and all conversions of existing and construction of new power projects will be designed on Thar Coal specifications, in the country.
The meeting was informed that SECMC and Engro Corporation are working on an integrated Coal Mine and Power Project with an estimated cost of 1.3 billion dollars at Block 2 of Thar Coal Project for mining of 6.5 million tons per annum and a power plant of 1200 MW.
The Prime Minister also decided in principle to provide sovereign guarantee to Sindh Engro Coal Mining Company (SECMC),a joint venture of Government of Sindh and Engro Power Gen and directed the Ministry of Finance to arrange the necessary sovereign guarantee for the company.
The Prime Minister said that in the present financial situation we have little space for providing sovereign guarantees. However this is a strategic decision which has to be taken for meeting the growing energy requirements of the country.
The Government of Sind had requested the Federal Government that conversion of existing 800 MW and new 600 MW power Plants at Jamshoro be designed on Thar Coal specifications.
The Prime Minister directed the Ministry of Water and Power to sign within a week, a Coal Off-Take agreement between GENCO and SECMC for Asian Development financed conversion of the existing 800 MW and new 600 MW Thermal Power Project at Jamshoro.
"History will not excuse us if we do not take correct decision in time" said Prime Minister Raja Pervez Ashraf while announcing these landmark decisions.
Today we have laid the foundation of an Energy policy which is based on our indigenous resources and would lead to savings of huge Foreign Exchange which are presently being spent on import of fossil fuels to run our Thermal Power Plants ,said the Prime Minister. Besides, this policy decision will ensure Energy security that has been eluding us for such a long time, he added.
The Prime Minister said that God had blessed Pakistan with sixth largest coal reserves and it is now upto us to utilize these huge coal deposits for the progress and prosperity of the country by generating affordable electricity.
The Prime Minister expressed the hope that these decisions will herald a new beginning and lay the foundation for sustainable socio-economic development in the country.
Thar Coal Field are estimated to have reserves of 175 billion tons, 68 times higher than Pakistan's total Gas reserves.
Those who attended the meeting included Syed Qaim Ali Shah, Chief Minister Sindh, Dr. Abdul Hafeez Shaikh, Finance Minister, Syed Khursheed Shah, Minister for Religious Affairs, Chaudhry Ahmed Mukhtar, Minister for Water and Power, Dr. Asim Hussain, Advisor on Petroleum and Natural Resources, Dr. Nadeem ul Haq, Deputy Chairman Planning Commission, Ms. Rubina Saadat Qaim Khani, MNA, Mr. Jam Mehtab Dahar, Provincial Minister for Revenue, Jam Saifullah Dharejo, Provincial Minister for Irrigation, Federal Secretaries, Finance, Planning Division, Water and Power, Chief Secretary Sindh, Dr. Samar Mubarakmand, Member Science and Technology Planning Commission, MD TCB, CEO Genco Holding, President Engro Corporation, CEO SECMC and other senior officials.