These pressure groups want to remove SCA and replace it with the Federal Coal Authority (FCA) to deprive provincial government of its legal rights vis-à-vis royalty, sources told Business Recorder.
Since the inception of the SCA in 1992, the project could not materialise only due to the stubbornness of Wapda, sources added. Because of Wapda's reluctance to offer fair tariff, has put the plans of M/s. Shenhua Group from China on hold. The group had planned to set up a 600MW power plant at an estimated cost of US $500 million in Thar, sources said. Wapda had offered 5.7 cents power per unit, which the Chinese are contesting.
Their stands is that since Wapda is paying eight to 13 cents per unit to gas-based, diesel based and fuel oil-based IPPs, it should increase the tariff for electricity produced by the coal-fired power plants. So far, Wapda has not responded to their demand.
The sources said that why should a company set up a $500 million plant when it has no surety of getting a good rate of return on its investment.
The source, however, expressed full confidence in General Musharraf and said that he is keen to utilise coal reserves of Sindh for the production of energy in the country and the province would not be deprived of its due right.
The issue was to be taken up at sites: Thar 175 billion tonnes, Lakhra 1.32 billion tonnes, Sonda-Jherruk 7.112 billion tonnes, Metting-Thatta 0.161 billion tonnes, and Badin 0.061 billion tonnes.
The Thar coalfield extends over an area of 9,000 sqkm out of which 356 sqkm has been studied in detail by the Geological Survey of Pakistan, proving nine billion tonnes coal in four blocks. The source said the moisture found in the coal at the Thar coalfield is 46.77 percent and heating value 5.774 percent (Btu) but when dried, its heating value jumps to 10.8 percent (Btu) making it the best coal in the world.
So is the case with Lakhra coalfield in Dadu district. Which covers approximately an area of about 1300 sqkm. It is well connected with Karachi and Hyderabad through roads and railway. Average annual production of coal from Lakhra is over one million tonnes. The Sonda-Jherruck coalfield is estimated to have a reserve of over seven billion tonnes lignite quality coal.
Several countries are producing electricity from coal while having world's fourth largest reserves Pakistan was far behind to cash in on coal for its power demands. The United States generates 52 percent electricity from coal, the United Kingdom 58 percent, Australia 77 percent, Germany 52.5 percent even India produces 77 percent power from coal while having enough reserves Pakistan could not even produce one percent from coal, the sources quoted figures to base the argument on.
Pakistan, at present is heavily dependent on power plants using gas and furnace oil, the sources said and added, gas is depleting at a fast rate and furnace oil cost the country a huge amount of foreign exchange while coal is the cheapest source available in the country. Realising coal's worth the government has signed six MoUs with different local and international companies but again WAPDA has not started work on the 500kv-transmission line that the government desperately needs to develop coal-fired power plants in Tharparker, the sources said.
Sizeable quantities of granite have been found in Nagarparkar area and efforts are under way for its exploration and exploitation, the sources pointed out.
The sources also explained that the infrastructure facilities such as roads, housing, potable water, electricity and telephone have been made available in Thar area, which will facilitate investors to carry out development activities expeditiously.