The government and Independent Power Producers have an agreement for using 10 percent coal in power generation, which will help reduce the electricity generation cost in the country.
Local Coal is several times cheaper than imported coal and the Private Power and Infrastructure Board are pursuing IPPs to switch over to Thar coal.
According to the IPPs using up to 10 percent of Thar Coal for power generation will not require any modification to the existing generations plants, the source said.
Even the use of 10 percent local will have a big impact on the cost of coal-based electricity, the source claimed. When coal prices were hovering above $400 per metric ton, the cost of the local coal was just around $40, the source added.
Remember that a few weeks ago PM Shehbaz Sharif inaugurated the 330MW Coal power project in Tharparker and now the decision will be taken to use local coal that will help in reducing the electricity price.