Hub Power Company Limited (HUBCO) plans to invest $1 million in Thar Energy Limited (TEL), the company said in a notice to the Pakistan Stock Exchange (PSX) on Thursday.

On Wednesday, HUBCO's board of directors in its Annual General Meeting authorised the company to make additional investments in TEL up to an amount not exceeding $1 million by way of a subscription of shares at the rate of Rs10 per share plus premium.

“Such investment shall be for a period up till December 2024 or such period until the company's liabilities as a sponsor remain undischarged, whichever is later," read the notice.

TEL is a joint venture between HUBCO, Fauji Fertilizer Company Limited and China Machinery Engineering Corporation, formed for the purpose of establishing a 330 MW Mine-Mouth Coal-Fired Power Generation Complex at Thar Block II, in Tharparkar under the China Pakistan Economic Corridor (CPEC).

TEL’s 330MW plant commenced operations from October 1. The company had earlier said that the development would enhance the collective power generation capacity of HUBCO and its group companies to 3,251 MW through plants spread over Balochistan, Punjab, Azad Jammu and Kashmir and Sindh.

Meanwhile, HUBCO's board also agreed to continue the provision of working capital undertaking to the lenders of China Power Hub Generation Company (CPHGC), “to provide working capital financing equivalent to an aggregate amount of $90.25 million either directly or through its wholly owned subsidiary, Hub Power Holdings Limited, for a period up till January 2030 or until the company's liabilities to CPHGC's lenders remain undischarged”.

CPHGC is a joint venture of China Power International Holding Ltd and HUBCO for the development of 2×660 MW Coal-fired Power Plant in Hub, Balochistan.