Government denies funding of coal gasification project

By
fraaz
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90
133

The country’s only pilot project of Underground Coal Gasification (UCG) has faced a serious set back from the government which has denied to provide agreed fund to the project despite a historic success of burning of Thar coal.
UCG project at Thar which was facing financial constrains is now feared to be failed after the interesting development on Monday. The oil importers’ lobby once again succeeded to fail another important project which was considered the only immediate solution of the country’s energy crisis, sources told Profit.
According to the sources, the management of UCG project was informed in Islamabad on Monday that the government would no longer be able to finance the project. The management, therefore, should invite the private sector to run gasification programme. The project management was demanding the agreed funds from federal government in order to carry on the development work of the important project which has successfully started producing gas by ignition of coal 600 feet below ground in December 2011. At least Rs5 billion was required to purchase machinery and other required things. “Once the operation of the project is stopped, the entire achievement will be lost as the project technically will not be able to restart after a complete shut down,” sources feared.
Through UCG of Thar Coal, the generation of 100 MW of electricity was expected by the end of 2013 at a total cost Rs9.9 billion. There was a powerful oil lobby behind the denial from the government to provide required fund for the pilot project, as UCG, according to sources, has started facing financial issues since the oil importers’ lobby started lobbing against the project through raising various questions about the gasification programme in media.
It is worth mentioning here that to complete power generation phase of the project, renowned scientist Dr Samar Mubarakmand, who is supervising the project, had requested Prime Minister Yousuf Raza Gilani to arrange immediate funding of Rs2.4 billion this year and the remaining 7.8 billion during the next financial year so that the country can benefit from the generation of 100 MW of electricity, before the end of 2013. At least Rs200 million out of the approved fund for the project was also yet to be released by the provincial government. The team led by Dr Samar has also approached the government for arrangement of $1.2 billion fund for 84 gasifiers aimed to meet expected demand of 2200MM cft by 2015.
Earlier, two meetings scheduled to be held in Islamabad to discuss the funding issue of the project were postponed for unknown reasons. The previously postponed meeting was to be held on January 16, among the ministries of petroleum, finance and other concerned authorities to discuss and approve the financial requirements of UCG programme at Thar, Sindh.

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90 COMMENTS

  42. As expected, The Thar Coal Project will never be on ground. We are a nation, which has deliberately opted to stay in the dark for good!

  85. I request the public to protest against this decision of the corrupt PPP mafia and pressurise the government to release funds.

  87. Phir bhi Bhutto zinda hey 🙁 !!! PPP & Jialas are wrath of God on Pakistan & there is no doubt!!

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