Thar Coal accord inked

KARACHI - Sindh government and Engro Power Gen Ltd on Tuesday inked an agreement for a joint venture on 60/40 basis to exploit Thar Coal for energy generation. CEO Engro and a representative of Sindh government signed the agreement at a ceremony held at the Chief Minister House here on Tuesday. Under the agreement, the first project of the joint venture would be an open cast mining facility with an annual capacity of 3.5 to 6.5 million tones for which a detailed feasibility study would be carried out soon. Engro Power Gen Ltd has been given the responsibility to carry out a feasibility report on an approximately 600-1000MW Thar Coal-based power plant. It was agreed that a company proposed to be called Sindh Engro Coal Mining Company to be incorporated with initial sufficient capital to complete the detailed feasibility study. Engro Power Gen Ltd and the government of Sindh will be equity partners in 40/60 ratio (60 per cent Engro) in the mining portion of the project. Detailed feasibility study to take 18 months and a future 6-12 months for financial close of the project. The company will ensure that adequate skill development programme are put in place along with other training facilities for locals of the area. Two per cent profit before tax to be spent on corporate social responsibility related activities in Thar. Board of Directors comprises of 10 directors in 60:40 ratio and the Chairman to be nominee of government of Sindh and CEO of Engro. It may be mentioned here that Sindh Cabinet had granted approval to the said joint venture according to which 1.1 billion dollars will be invested on the mining side and 2.2 billion dollars would be invested in power side. According to cabinet decision, the construction work of airport at Islamkot has been started while Railways was busy in preparation of feasibility report and study is being carried out to provide 250 cusec water to Islamkot and Wapda was studying for transmission of electricity.

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