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Ports Ministry to develop mechanism for coal supply to IPPs

Ports Ministry to develop mechanism for coal supply to IPPs

ISLAMABAD: The Federal Ministry of Ports and Shipping Secretary Babar Yaqoob Fateh Muhammad has held series of meetings with Punjab Chief Minister Mian Shahbaz Sharif to develop a mechanism for the transportation of imported coal through sea ports to Independent Power Producers (IPPs) located in Punjab.
A source from ports and shipping told Customs Today that Punjab CM Shahbaz Sharif has been taking keen interest in the issue of transportation of coal for IPPs to fulfill the growing demand of coal in power sector.
The Ministry of Ports and Shipping Secretary Babar Yaqoob said that once these IPPs converted to coal from existing furnace or other fuels, coal in bulk quantity will be required to keep these projects running.
Punjab CM Shahbaz Sharif said there is a need for evolving a comprehensive mechanism for the supply of imported coal from seaports to the power generation plants. Chinese technology, he said, should be used for off loading of coal from ships at the ports.
Source said that Ministry had also issued a tender notice for the establishment of coal terminal at Port Qasim Karachi, last month.
It is pertinent to mention that the Punjab Government has planned to add approximately 7200 megawatts (MW) through medium term (3-5 years) coal projects, to the national supply line. These coal power projects include Qadirabad (Sahiwal), Bhikki (Sheikhupura), Haveli Bahadur Shah (Jhang), Balloki (Kasur), Trinda Saway (Rahim Yar Khan) and Mouza Saddan Wali (Muzaffargarh) will be operational in few years.
Moreover, to ensure persistent and uninterrupted fuel supply to IPPs the government also plans to convert existing IPPs on coal. The federal government has approved incentives for some existing IPPs for converting to coal from Residual Fuel Oil (RFO) last November. In June last year, three Memoranda of Understanding (MoUs) were also signed under the auspices of Finance Division with the IPPs for resolution of circular debt issue.