PESHAWAR, Dec 27: Small and Medium Enterprises Development Authority (Smeda) and Fata Development Authority (FDA) have joined hands for utilisation of coal extracted in Federally Administered Tribal Areas as an alternative energy source besides promoting investment and creating employment opportunities in tribal areas.

In this connection, the FDA and Smeda have signed a formal agreement under which the latter will conduct feasibility study for establishment of a coal briquette plant using coal deposits of Fata, with a view to develop the mineral resources potential of the region.

As per details, the Smeda will initiate the feasibility study within a month of the agreement and complete it within nine months, while the FDA will provide 10 tons coal briquettes as sample to be manufactured through Pakistan Council of Science and Industrial Research (PCSIR) labs.

Besides, the FDA would assist the Smeda for free approach and security of employees, infrastructure and assets while conducting feasibility study in Fata for establishment of coal briquette plant. The study would have three components, including coal reserves estimates, market study and feasibility study.

The study on reserves estimates include identification of coal bearing area, number of total coal mines, estimation of total coal production and labour force, identification of closed mines and its reasons besides identification of new coal bearing areas in Fata.

Under the market study, the Smeda will go for seeding of 10 tons coal briquettes in the market and check response of the consumers, review current prices of various fuels available in Fata and work out a competitive consumers’ price, etc.

Similarly, the feasibility study will cover information concerning selection and evaluation of suitable sites for establishment of the plant along with other infrastructure facilities.