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Lucky Cement gets licence to generate 660MW coal power

March 06, 2016

KARACHI: The government has licenced Lucky Electric Power Company, a concern of Lucky Cement, to generate electricity from its 660-megawatt coal-fired plant at the country’s industrial hub, a document revealed on Saturday. 

“In order to meet the future energy needs of the country and to improve the energy mix, the Pakistan Power Infrastructure Board issued letter of intent to various local and foreign investors/groups, including Lucky Cement Limited for setting up 660-MW imported coal-based generation facility at Deh Ghangario, Bin Qasim Town,” the document said.

“The entire electric output will be sold to the National Transmission & Despatch Company (NTDC) and NTDC will be responsible for the construction of the infrastructure and transmission line and will seek and obtain all related approvals pertaining to the construction of transmission line and power evacuation.”

Earlier, the Pakistan Mineral Development Corporation (PMDC) raised objection over the coal projects. It called the establishment of coal power projects near big cities like Karachi unsuitable as they produce large quantity of ashes and other effluents.

The PMDC contended that hazards of coal power generation will be borne by the residents of Karachi alone, while the benefits are for the entire country as the power are to be supplied to the NTDC. 

The corporation directed Lucky Electric Power to submit a report on a bi-annual basis and confirm that the operation of its proposed generation facility is compliant with the required environmental standards.

The National Electric Power Regulatory Authority (Nepra), however, said all types of electric power generation resources, including coal, hydel, wind, solar and other renewable energy resources must be tapped and developed on priority basis both in public and private sectors for sustainable development.

“Growing power consumption can directly stimulate faster economic growth and indirectly achieve enhanced social development,” the Nepra said. “The economic growth of any country is directly linked with the availability of safe, secure, reliable and cheaper supply of electricity.” 

The Port Qasim Authority signed an implementation agreement with the Pakistan International Bulk Terminal (PITB) for the establishment of coal and clinker/cement terminal with handling capacity of 12 million tons coal and four million tons clinker/cement. The project is expected to be completed by December 20.

The coal requirement of the Lucky’s project can be handled at PITB for which sponsors are likely to enter into coal handling agreement.

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