Coal based independent power plants are facing serious threat of closure as increase in the price of imported coal and depreciation of Pak rupees has totally eroded the profitability of this important segment of national economy.
Commenting on the ill impacts of recent increase in C&F on imported Coal, Shabbier Hussain Chawla, President Faisalabad Chamber of Commerce & Industry said that during last 9 months the price of coal has jumped from 90 Dollars to 103 Dollars. This huge increase of 14 percent coupled with 10 percent decrease in Pak Rupees has made it impossible for power producers to run their units in the prevailing situation. He said that these power plants are at the verge of collapse and if immediate remedial measures were not taken the closure the units will foment another wave of un-ending load shedding of electricity.
He said that the National Grid is already handicapped to fulfill the domestic needs of the electricity. He said the closure of private power plants will re-start load shedding of electricity not only for the domestic but also for the industrial sector. He expressed concern that before the start of summer season this situation is very critical as the consumption of the electricity is increased by 20 percent due to hot summer.
He demanded that Government must withdraw 5% import duty on coal in addition to allowing duty free import of coal for the private power plants. He warned that if Government failed to take immediate action the load shedding may prompt a new wave of protestation in the country.