KARACHI: Many experts, including Dr Abdul Qadeer Khan, have expressed doubts over the coal-fired power generation technology to be used in the Thar coalfield under a project spearheaded by Dr Samar Mubarrakmand, said Sindh Energy Minister Murad Ali Shah on Tuesday.

He was responding to questions raised by legislators during the question hour that pertained to the energy and special education departments during the Sindh Assembly session chaired by Speaker Agha Siraj Durrani.

Also read: WB backed out of Thar coal project over pollution concerns, PA told

Responding to a question asked by Muttahida Quami Movement legislator Naheed Begum regarding doubts expressed by nuclear scientist Dr A.Q. Khan over the use of the technology for power generation — using gas produced by coal — to be used in Dr Samar Mubarrakmand’s project, the minister said that he was aware of the doubts and concerns expressed by some experts, including Dr A.Q. Khan.

He said that he was not technically qualified to comment on the issue as both Dr A.Q. Khan and Dr Samar were top nuclear scientists.

But, he said, he knew that except for a place or two, such a technology was rarely being used globally on a commercial scale. It was a federal government project and Islamabad would be in a better position to comment on it, he added.

He said that the experts had also expressed concerns regarding subsoil burning of coal to produce gas as some of them feared that the fire could spread all over the coalfield, but when the issue was discussed with Dr Samar he said that it could be controlled and that there was no danger of collapse of the entire coalmine or any other damage.

The minister said that it was probably because of such doubts and concerns that the 100-megawatt project had been revised and now a pilot project to generate eight to 10 megawatts was being implemented at a cost of around Rs8.9 billion, out of which over Rs2.1 billion was spent till November 2014.

“It is expected to be completed by September 2016.”

Responding to another of her question regarding the status of leases given for coalmines, the minister said that Badin coalfield spreading over 100 square kilometres was granted to the Al-Abbas group on Feb 28, 2009 and besides developing the mines the group had to install a 300-MW coal-fired power plant, but as no progress was made in the project, the lease had been cancelled.

Replying to another of her question that after the cancellation of the lease why the area was not being leased out to the second bidder, the minister said that the Al-Abbas group was given a lease without open bidding so there was no bidding process involved, hence no second bidder existed.

He said that 56-square-km area at Sonda, Jherruk was leased out to the China National Machinery Import and Export Corporation in 2008 to develop coalmine and install 405-MW power plant, but the progress on the project was slow and the company many months back was asked either to expedite the work or the lease would be cancelled.

The company had promised to start the work soon, but it did not do so yet, he added. The government did not want to take punitive action against a company from a friendly country like China but if the work did not start soon the lease would be cancelled, he added.

He said that a few American and European companies had shown interest in various coalmines and power plants and their offers were being looked into. But the leases would be given through an open bidding in a transparent manner, he said.

Responding to a question by Pakistan Peoples Party legislator Dr Sohrab Sarki as to why the lease of Lakhra coalmine was not being cancelled as the company was not using coal for power generation but selling it in the open market in violation of an agreement, the minister said that the Lakhra Coal Development Company was jointly owned by Sindh (25 per cent), the federal government and Wapda (75 per cent).

It had to generate 150MWs (three plants of 50MWs each) electricity, but it was currently generating between 20MWs and 25MWs. It was also selling coal in open market in violation of the agreement / lease conditions. The Sindh government wanted to get the Wapda / federal government shares in the company to fully gain its control and then to upgrade it. In the meantime the mine could be closed down, but a large number of people employed at the project would become jobless, so the government was not taking the extreme step. Soon the company shares would be obtained by Sindh and then the company would be upgraded and fully developed, he said.

Responding to a question asked by MQM legislator Saleem Rajput if any penalty was imposed if the lease holding company did not fulfil its obligations or did not initiate work on the project, the minister said that the usually the guarantee money was confiscated.

Responding to another of his question regarding companies giving employment to local people, the minister said that while coalmine lease holders usually accommodated the local population while recruiting, the gas companies controlled by the federal government, did not follow the agreement.

He said that the federal government was approached but the situation had not yet changed or improved.

Responding to identical questions by PPP legislators Ghulam Qadir Chandio and Naeem Kharal that while funds had been issued by the government, the electricity had not yet been provided to villages in their respective constituencies, Mr Shah said that the Sindh government provided funds, which it had already done, to the power companies, which were controlled by the federal government, hence Sindh could not take any action against the power companies. The federal government was being contacted.

Published in Dawn February 25th , 2015

On a mobile phone? Get the Dawn Mobile App: Apple Store | Google Play