Energy crisis causing Rs 230 billion loss annually: National Assembly body informed

The energy crisis in Pakistan is causing an estimated loss of Rs 230 billion annually, besides depriving about 0.4 million people of jobs. This was stated by Dr Samar Mubarakmand, Member Planning Commission of Pakistan on Science and Technology, while briefing the National Assembly Standing Committee on Petroleum and Natural Resources, which met here on Tuesday with Sardar Talib Hassain in the chair.
Dr Mubarak informed the meeting that total coal-based power generation in the world was 41.61 percent, while in Pakistan it was only 2.27 percent. Resultantly, the current energy crisis was causing Rs 230 billion loss every year as well as resulting in huge unemployment in the country. He said that due to the worsening energy crisis about 400,000 people in Pakistan were being deprived of jobs as the industrial units are forced to shutdown. "If we start utilising the Thar coal reserves, it will enable our industrial units to operate with full capacity and consequently huge jobs would be created for the people of Pakistan," he added.
Dispelling the notion that Thar Coal project would create any sort of environmental hazard, he said some people were misguiding the government, adding that not only Pakistani but international companies from Germany and China had also declared Thar Coal project feasible.
The committee directed the federal government to release maximum funds for Underground Coal Gasification (UCG) Project in Thar and remove every single obstacle in its way to overcome energy crisis. Briefing the meeting, Dr Mubark informed that UCG Project for generation of 100 MW of electricity, at Block V in Tharparkar, commenced on the first release of funds on April 28, 2010. "To date US $9.22 million have been released and the allocation for the Project in PSDP 2011-12 is US $8.1 million," he added.
He said that the first Test Burn was expected in the current month and the produced gas would be connected to the power turbines to generate electricity. To a question, he apprised that total project cost was US $115.6 million. Answering another query, he said that at present about 80 industrial units had installed coal gasifiers for generating electricity and by the end of 2012 there would be 400 industrial units utilising the coal gasifiers for power generation.
Dr Mubarak said that the Planning Commission had identified nine locations which were suitable for generating power through gasification across the country. He was of the view that Thar Coal could play a pivotal role in overcoming the current energy crisis, as Thar Lignite Coal reserves are 175 billion tons spreading over 9,600 sq km.
He said that generation cost of electricity through coal gasification was much lower as compared to petrol or gas. Briefing the Committee, Muhammad Younis Dagha, Secretary Coal and Energy, Sindh, said that in 2001 the-then President of Pakistan had requested his Chinese counterpart to send a team of experts to Pakistan so that they could undertake the Thar Coal project.
He said that in 2001, Shenhua Group of China agreed to construct two power plants of 600 megawatts, each with 300 megawatt capacity at Thar coalfield, but unfortunately Nepra did not accept the offer of the Chinese company. He said that the Shenhua Group had offered Pakistan that it would provide per unit of electricity at 6 cents, but Nepra insisted that it would only give 5.3 cent per unit of electricity and consequently the project remained uncompleted.
The meeting was attended by Nawab Ali Wassan, Miari Abdul Haq, Mir Ahmadan Khah Bugti, Nawab Muhammad Yousaf Talpur, Nazar Muhammad Gondal, Asghar Ali Jatt, Aftab Ahmad, Muhammad Barjees Tahir, Rana Afzaal Hussain, Muhammad Hanif Abbasi, Abdul Waseem, Syed Haider Shah, besides senior officers of the Ministry of Petroleum and Natural Resources, officers from Sindh, Khyber Pakhtunkhwa and Punjab.