Nishat Chunian Power Limited (NCPL) has signed a Letter of Interest (LoI) issued by Punjab Power Development Board for setting up of 660 MW coal-based power project at Jhang, Punjab. Tanveer Khalid, CFO NCPL, said that the construction of the project was expected to start in the mid of next year. Total cost of the project is around Rs 100 billion out of which Nishat group is going to be a partner of 20 percent, he added.
NCPL has sent information to Karachi Stock Exchange that the NCPL owned by Nishat Group is the main sponsor of the consortium, which includes Nishat Chunian Limited, DG Khan Cement Company Limited and Adamjee Insurance Company Limited. However, feasibility study will be carried out to take decision for the proposed power project.
NCPL is a public limited company, subsidiary of Nishat Chunian Ltd (NCL) incorporated in February 2007. The Company was established as a power generation project having gross capacity of 200 MW and net capacity of 196 MW under a 25-year 'take or pay' agreement with National Transmission & Dispatch Company Limited (NTDCL). The project has been commissioned under 2002 Power Policy of government of Pakistan and has been granted a generation license by the National Electric Power Regulatory Authority (Nepra) in September 2007. The company started its commercial operations on July 21, 2010.
The plant is combined cycle with 11 reciprocating engines and a heat recovery steam turbine provided by WÄRTSILÄ. Net output of the project is 195.722 MWh. The primary fuel of the plant is Residual Furnace Oil (RFO). The plant site is located at 66 Km Multan Road, Lahore. Turnover for the FY 2013 is recorded at $254 million while the Net profit recorded is $27.66 million.
NCPL is an active member of Independent Power Producers Advisory Council (IPPAC) and is listed on Karachi Stock Exchange and Lahore Stock Exchange. Commenting about the coal-based plant, Usman Zahir, head of research at BMA Capital, said that coal-base power plants are beneficial for the country given the lower cost of generation. Coal-based power costs about Rs 8 per unit while FO- based generation costs about Rs 18 per unit. The government has also adjusted the Tariff for capacity payments during construction which will result in significant interest in coal-based generation, he mentioned.
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