View attachment 801209
To explain the salient points.
1) This is the generation cost of IPP's. High ROI backed by sovereign state guarantee and capacity payments are separate. The cost easily exceeds Rs30/ kwh before reaching the Discos.
2) Janwars from plmn have been constantly lying that Thar coal is more expensive than imported coal ( Sahiwal coal). All it needed was economy of scale. The reality is thar coal is the cheapest base load apart from hydal or local gas ( which is running out).
3) Not only these imported fuel based IPP's cause significant impact on our Trade deficit ( This year alone it will cost us in ~ $6-10b in precious forex to import fuel to run these plants) but the ROI and the further charges are on top of this in relation to burden on forex.
4) With the economy of scale ( if the power projects utilized thar coal) regasification and diesel production thar coal has the capacity to solve impending gas crisis in Pakistan.
5) Recently some obvious handles were elatic that there was Fuel adjustment surcharge of 4 Rs per unit. Is it not obvious that if we run IPP based on imported fuel, with the broadbase increase in energy prices generation cost will go up. On the other hand Thar coal is completely indigenous source with no fluctuations based on international energy prices.
6) Majority of the cost from Thar coal generation goes into the ecosystem in our own country benefitting our own people creating jobs and improving our own mining industries contributing to GDP.
It is not rocket science to get coal out of ground, that too in thar.
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