In this connection, FDA and Smeda have signed a formal agreement under which the later will conduct feasibility study on establishment of coal briquetting plant based on Fata coal deposits, with a view to value add and develop the mineral and natural resources potential of the region to the extend to bring it to a level of attracting domestic and foreign investment and for ultimate utilisation of these mineral commodities on scientific lines for the benefit of the common man of the region and in the larger national interest.
Both parties after accomplishing the viability of conducting the feasibility study on coal briquetting plant, Smeda will initiate the feasibility study within one month of the agreement and will complete it within maximum period of nine months.
Under the arrangements finalised in the agreement, FDA will provide 10 tons coal briquettes as sample to be manufactured through FRC, Pakistan Council of Science and Industrial Research (PCSIR) Labs Complex, Karachi to Smeda within three months of the signing of the agreement for market seeding in order to gauge its marketability.
Fata Development Authority within its ambit and while utilising its political linkages will reasonably assist Smeda for free approach, entry and security of employees, consultants, professionals, manpower, infrastructure and assets while conducting feasibility study in Fata for establishment of coal briquetting plant. The study to be conducted by Smeda will be comprised of three components included coal reserve estimates, market study and feasibility study.
The study on reserve estimates are included identification of coal bearing area, number of total coal mines, estimate of total coal production, estimation of labour force, identification of closed mines and its reasons and identification of new coal bearing areas in Fata.
Under the market study, Smeda will go for seeding of 10 tons coal briquettes in the market and response from the consumers, review of current prices of various fuels available in Fata and to work out a competitive consumers' price to market this project feasible, study marketing of other fuels and to recommend best distribution and marketing mechanism for coal briquettes, estimate present consumption level of fuel and forecast its future demand, study long term availability of coal in the area and its price structure.
Similarly, the feasibility study will broadly cover information regarding selection and evaluation of suitable sites for establishment of plant along with other infrastructure facilities, evaluation of the results and preparing detailed feasibility report indicating economic size of plant, estimated capital investment, operating cost, market feasibility and other techno-economic parameters, development of conceptual design of the plant to be fabricated with in the country or as a joint venture with any other country, carrying out financial and economic evaluation of the entire project with option to purchase the coal from open market, recommendation of appropriate steps for its implementation, availability of land with its suitable location and price comparison, determination of acceptability of local briquettes among the tribal culture and Khyber Pakhtunkhwa, in backdrop of gas loading and potential distribution of system for coal briquettes.
Talking to this scribe, Provincial Chief, Smeda, Khyber Pakhtunkhwa, Javed Iqbal Khattak a step forward for promotion investment, generation of employment opportunities for the people of Fata and after all the multiple usage of the coal as alternative energy sources in the prevailing energy crisis in the country. He said that due to the present energy shortage, industrial clusters in Wazirabad, Faisalabad, Gujrat and other areas are using costly wood as fuel. He said that coal briquettes will not only benefit domestic consumers, but after the establishment of the processing plant will be used in the industrial sector.