ISLAMABAD (APP) - Prime Minister Syed Yousuf Raza Gilani has said the sugar mills can play a major role in co-generation of energy in the country. The Prime Minister was talking to a delegation of Pakistan Sugar mills Association (PSMA) led by its Chairman Shunaid Qureshi here at the Prime Minister House. The delegation briefed the PM about the energy co-generation at the local level, by sugar mills, out of residual elements of the sugar industry. They told him that with the establishment of co-generation power plants at the premises of sugar mills not only the sugar industry but overall power generation capacity of the country will improve. Sugar mills will be generating 1000 MW of electricity by 2010 and it will be enhanced to 2000 MW by 2012, the Prime Minister was informed. Prime Minister Gilani appreciated the concept and scope of the project and formed a high powered committee to examine the issues pertaining to the co-generation of electricity and the tariff issue with NEPRA. The Committee is to be headed by Minister for Water and Power while members of the committee include Secretary Water and Power, Secretary Industries and Production and Chairman NEPRA.  Prime Minister Gilani told the delegation that the outstanding dues of the farmers of crushing season against the sugar mills must be paid on priority. The delegation assured the Prime Minister that these dues will be paid by July 31. Meanwhile, the PM, while talking to Fazal Rahim, President International Oil Company (IOC) of USA, said Pakistan offers best investment opportunities to foreign investors, especially in the energy sector, adding the government would fully facilitate initiatives for setting up oil refineries in the country. The Prime Minister said that current energy requirements of the world has enhanced the need to open new avenues and Pakistan being on the doorstep of energy corridor of Central Asia provides best option. The Proposed Turkmanistan - Afghanistan-Pakistan and (TAP) gas pipeline offers best opportunity to the international companies for investment, he added. The PM said the government of Pakistan has provided special incentives for setting up of oil refineries. Under these incentives, companies do not need any prior permission for setting up of refineries; they can import crude oil from any source; refineries are free to sell their product to any market. Prime Minister Gilani said the government would welcome and fully facilitate any initiative for setting up of oil refineries and energy projects. IOC President, Fazal, informed the Prime Minister that his company plans to invest in Pakistan in the energy sector. He briefed the Prime Minister of various proposals which includes a Mega Refinery at Gwadar of 1.2 million barrel a day capacity, 4000 MW of power generation projects, 3000 MW Coal based power project and food security projects. The Prime Minister instructed the Board of Investment and concerned Ministries to evaluate the proposal on priority basis. IOC is a USA based company having its investment and stakes in oil drilling, oil pipeline, refineries and power generation projects all over the world. Shah Mehmood Qureshi, Federal Minister for Petroleum, Secretary Petroleum and other senior officials of the government were also present during the meeting.