Minister Leghari Urges Action on Coal Supply Issues

Web DeskJune 9, 2024 10:37 AMbusiness
  • Minister Leghari raises concerns over coal supply to power project
  • Delays in coal mine completion lead to higher fuel costs
  • Efficient resource management crucial for energy sector sustainability
Minister Leghari Urges Action on Coal Supply IssuesImage Credits: brecorder
Minister Leghari highlights concerns over coal supply delays impacting power project costs and urges efficient resource management for sustainable energy practices.

The Minister for Power, Sardar Awais Ahmad Khan Leghari, has raised concerns over the supply of coal to the Lucky Electric Power Co Ltd's 660 MW coal power project in Port Qasim Karachi. The project, which initially operated on imported coal, was later switched to local Thar coal to reduce reliance on imports and lower financial burdens.

In a letter to the Sindh Chief Minister, Leghari highlighted that delays in the completion of Phase 3 of the Block-II mine by the Sindh Engro Coal Mining Company (SECMC) have led to higher fuel costs for the project. This delay has also resulted in the import of significant amounts of Indonesian coal, costing the country millions in foreign exchange.

The Minister emphasized the need to optimize coal resources by diverting surplus coal from Block-1 mine to the Lucky Electric Power Co Ltd. He pointed out that the underutilization of coal dedicated to Independent Power Producers (IPPs) operating on Thar Coal Block-II and Block-I is due to system constraints in power evacuation.

Leghari urged the Chief Minister to promptly address the issues faced by coal mining companies to ensure the timely supply of Thar coal to the power project. This move is crucial to benefit end users and optimize resources for the country's energy needs.

The call to address coal supply issues by the Minister for Power highlights the importance of efficient resource management in the energy sector. By resolving these challenges, the government can enhance the reliability of power supply, reduce costs, and promote sustainable energy practices for the benefit of all stakeholders.

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