Maple Leaf to set up 40MW coal-fired plant

KARACHI: Maple Leaf Cement Factory (MLCF) has decided to setup a 40MW coal-fired power plant to fuel its cement manufacturing operations, an official document said.

The company will generate funds worth Rs5.5 billion for the project from its own resources. The Kohinoor Group’s cement manufacturer has approached the National Electric Power Regulatory Authority (Nepra) through its wholly-owned subsidiary Maple Leaf Power Limited (MLPL), seeking generation licence for a 40MW coal-fired power plant in Mianwali.

Major equipment of the plant is being purchased from Sinoma Energy Conservations, a Chinese firm with market presence in over 70 countries. The plant is expected to operate throughout the year, owing to the ample coal supply from international, as well as local markets and steady electricity demand from end-consumer, ie, Maple Leaf Cement Factory Limited, it said.

There has been an enormous increase in the demand for energy as a result of industrial development and population growth, in comparison to enhancement in energy production. The document also revealed that the energy supply is far less than the actual demand, which resulted in crisis-like situation.

Electricity shortages cause losses to the industry, in turn causing many closures. In addition, the cost of electricity has risen sharply that has left the products manufactured by the companies in Pakistan uncompetitive in the international, as well as in the local markets, which is flushed with cheaper Chinese products, it said. In this scenario, the production of electricity on coal is not only the need of the hour, but if utilised properly, can change the economic appearance of Pakistan.