LAHORE - APTMA Punjab has signed a Memorandum of Understanding (MoU) with China Machinery Engineering Company, a Chinese company, for installation of 330-MW coal-fired power plant.
Chairman APTMA Punjab S M Tanveer and Vice President CMEC Li Jingkai signed the MOU at the APTMA Punjab office on Wednesday. Group leader APTMA Gohar Ejaz, besides other office bearers of APTMA Punjab, witnessed the signing ceremony.
As per the MoU, the APTMA being apprehensive of the acute power shortfall and the crisis facing the textile industry on account thereof and being concerned at the regionally uncompetitive electricity tariff in Pakistan and CMEC being willing to invest in Pakistan in the setting up and operation of a coal fired power plant have agreed to join hands to strengthen and give a formal shape to the understanding reached between them for setting up a 330 MW coal fired power plant.
The plant will be installed in the Potohar/Salt Range region on Punjab coal.
Further, APTMA has also agreed to execute power purchase agreements (PPAs) with CMEC, the operators of the power plant.
The CMEC will supply electricity on a continuous basis as per details to be set out in the PPAs through wheeling.
The CMEC has agreed to offer discount on tariff arrived at on the basis of the latest upfront tariff determined by NEPRA for compatible coal fired plants.
Speaking on the occasion, Chairman APTMA Punjab S M Tanveer said it is a historic moment for APTMA members, as they are going to find energy solutions for the industry for remaining operational 24/7.  He said the Punjab-based textile industry is facing acute shortage of energy under which it cannot remain viable to run their operations. The present agreement will be a milestone in becoming self-sufficient in energy generation. He added there will be a series of agreement for meeting 800 MW energy requirement for the industry.  Group leader APTMA Gohar Ejaz said APTMA being responsible organisation is shouldering the burden of the government on energy projects.  He said the coal-fired power plant will provide electricity to member mils at affordable price and give boost to investment and employment in Punjab.