Power generation licence issued

KARACHI: The National Electric Power Regulatory Authority (Nepra) has granted a generation licence to Jilani Energy Pvt Ltd for a 6.5MW coal-based captive power plant proposed to be setup for meeting the power requirements of Jilani Group of Companies, which is pioneer in the field of fabric and plastic packaging products in Pakistan.

The power sector of the country has been experiencing reliability issues due to which the utilities are finding it difficult to supply electric power to its consumers on a continuous basis.

In order to cope with this situation, various industrial groups / units are planning to set up generation facilities using cheaper resources for supplying to their industrial concerns.

The $3.95 million proposed plant will be setup in Sheikhupura and would run on imported coal as primary fuel and use local coal as secondary fuel. Daily consumption of coal for power generation is expected to be around 97 tons.

Cost of the project will be funded by equity financing. Jilani Group has sound financial position and as per its latest balance sheet it has total assets of around Rs3 billion, which is considered sufficient to fund such projects.