The Pakistan government has banned construction of power plants in that country that are based on imported coal. However, the projects under the China Pakistan Economic Corridor (CPEC) have been exempted.
Ironically, the ban has come at a time when that government stressed upon improving the power supply infrastructure there. To realize the objective, the power generating capacity was targeted to be raised by 13, 207 MW by 2018. Out of the target, coal-based plants accounted for 3,960 MW (domestic as well as imported coal).
The ban has directly impacted upcoming projects, involving a cumulative capacity of 1,000 MW. Siddiqsons Energy had planned setting up a 350 MW plant; and Lucky Energy had intended to build a 660 MW coal; that would be based on imported coal. However, the projects could be still undertaken if the fuel is shifted to domestic coal, according to a subsequent directive to the companies by the Pakistan Power Infrastructure Board (PPIB).
Following the government decision, Hubco has brought down its proposed power generating capacity to 660 MW from 1,320 MW. Siddiqsons Energy and Lucky Energy are weighing whether or not to go ahead with the planned projects.
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