The Thar Coal and Energy Board (TCEB) in its 7th meeting at Sindh Chief Minister House on Saturday decided to give 20.5 and 20 percent Internal Rate of Return (IRR) to those companies investing in 'initial projects' at the Thar Coal achieving financial close respectively by December 2014 and 2015.
The federal government has summoned a high-level meeting next week in the federal capital to review performance of the Karachi Electric Supply Company (KESC). This was stated by Federal Minister for Water and Power Raja Pervez Ashraf while briefing media after 7th meeting of the TCEB.
He said the meeting, which was chaired by Sindh Chief Minister Syed Qaim Ali Shah, reviewed the issues ranging from giving fiscal incentives to the investors to developing railway link between the Thar Coal and Karachi Port. According to Ashraf, the Chief Executive Officer of KESC would be briefing a high-profile meeting in Islamabad next week about the performance of the utility.
He said besides KESC's outstanding dues against government institutions the meeting would take account of the complaints of bogus and excess billing against the KESC. He said to overcome power crisis in the country the government during next three years would build at least 13 dams, special emphasis being on coal and hydro based power generating plants, which are cost effective.
The federal minister said the Board formed a three-member committee to determine price of the coal on top priority, adding a group of experts would work out a mechanism for coal pricing and develop a comprehensive proposal.
"The Board discussed the incentive package for investors and decided that IRR for initial projects achieving financial close by December 2015 on indigenous coal to power project; they would be entitled to 20 percent IRR and those achieving financial close by December 2014 would get additional 0.5 percent IRR," said a handout handed to the journalists on the occasion.
It said approving the proposal of Clean Coal Centre of International Energy Membership for Sindh Coal Authority, the Board appreciated the joint venture agreement proposal for Badin Coal Field and resolved to support all such initiatives to develop coal projects in the province.
According to the handout, the Board, reviewing progress on feasibility study for the railway linkage of Thar Coal and Karachi Port, decided that the PRACS would prepare the final proposal in this regard. The Board also supported the allocation of an additional 24.6 sq km area for Sindh Engro Coal Mining Company (SECMC) and the issuance of LoI to Engro Powergen.
The Board also cleared the inclusion of three additional members, one from NTDC and two from private sector, in the UCG's governing body. Stressing an early completion of infrastructure required for the Thar Coal Fields, the TCEB lauded progress on the project being undertaken by the SECMC.
The Board also discussed the draft MoU by Pepco deciding that the MoU would be signed by January 20, 2009. The meeting was attended among others by Finance Minister Shaukat Tarin, Member Madad Ali Shah, Sindh Minister for Irrigation and Power Syed Murad Ali Shah, Minister for Revenue Jam Mehtab Dahar, Chief Secretary Sindh Fazal ur Rehman and Federal Secretary Water and Power Shahid Rafi.