Lucky Cement to sell 49.5MW power to KESC

KARACHI - Lucky Cement would generate income from selling electricity to KESC besides cement business. In this regard, the company has signed a Memorandum of Understanding with KESC to supply 49.5 Mega Watt of electricity out of 175 MW of installed capacity under gas based tariff. According to Furqan Punjani, an analyst, the tariff would be similar to the tariff being offered to other power plants. However the details are yet to be announced. The city is facing severe power loadshedding, this 49.5 MW of power would decrease the duration. He said that the electricity supply would be started in next few months and there are more companies coming in the market that will be able to generate this type of energy. The companies use their extra generating electricity for selling, because they have to overcome their production costs, he added. Similarly the company during fiscal year 2009 also signed a Memorandum of Understanding with M/s Oracle Coal fields for indigenous coal supply. This project will reduce the import cost and risk against rupee depreciation. However company successfully started Waste Heat Recovery Project in Karachi while for Pezu it will be fully operational within few months. Currently, fuel and power remains the major portion (73pc) of overall cost of production of the company. With rising coal prices (major source for combustion), the heat recovery plant would reduce the cost of production Furqan further added.