The Sindh Coal Authority, Mines and Mineral Development Department, Government of Sindh and Descon Engineering and Descon Mines (Pvt) Limited here on Sunday signed a Memorandum of Understanding (MoU) for conducting feasibility study for the establishment of 125MW (each) integrated mining and power generation units at Golarchi in District Badin and at Southeast of Naukot, in District Tharparkar.
The MoU was signed by Syed Abbas Ali Shah Director General, Sindh Coal Authority and the representatives of M/s Descon Engineering and Descon Mines (Pvt) Limited.
The Sindh Coal Authority will allocate an area of 100 square kilometres to them to carry out feasibility study to undertake development of identified coal mines and construction, commissioning and operation of minemouth Coal-fired power plants.
The Descon Engineering and Descon Mines (Pvt) Limited shall apply for letter of intent to Private Power and Infrastructure Board (PPIB) Water and Power Development Authority (Wapda), Government of Pakistan for establishment of minemouth indigenous coal-fired power stations with total capacity of 125 mw each. If the power project is found feasible the Sindh Coal Authority will support and assist in obtaining of the same.
The Sindh Coal Authority will allocate the coalfield area for a period of 18 months from the date of demarcation of the area for exploration license, within 15 days after signing of MoUs. While M/s Descon Engineering and Descon Mines (Pvt) Limited will carry out survey and exploration/investigation at its own cost and risk for completion of a Bankable Feasibility Study Report.
The demarcation of the coalfield area will be done by a joint survey team comprising the technical personnel of Descon Engineering and Descon Mines (Pvt) Limited, Director General Sindh Coal Authority, Director General Mines and Mineral Development Department and by the concerned Revenue Department of Government of Sindh.
The purpose of investigation is to determine suitable quality and quantity of coal which can be economically and safely mined, handled and transported to the power plant in order to provide at least one million tonnes of coal or more annually for 30 years.
The signing ceremony was attended by Irfanullah Khan Marwat, Minister for Mines and Mineral Development Department, Syed Abbas Ali Shah, Director General, Sindh Coal Authority, Muhammad Khalid Mirza, Director General Mines and Mineral Development, Abdul Razak Dawood, Chairman Descon Engineering and representatives of Descon Engineering.