IPPs bound to use Thar coal first

The National Electric Regulatory Authority (Nepra) has made it mandatory for all independent power producers (IPPs) to utilise local coal, particularly from Thar, before opting for imports that would also be contracted in Pakistani rupees. This has been done through notification of ‘Guidelines for Procurement of Coal on Spot Basis’ issued by the regulator to ensure that procurement of coal on a spot basis is conducted fairly and transparently and is efficient, economical and provides value for money for the consumers. The IPPs including those based on imported coal would be required to “first ensure whether local coal such as from Thar is available which can be used keeping in view plants’ technical requirement’ and they would estimate total quantity and quality to be procured in the next six months and then contact Thar Coal Energy Board (TCEB) to confirm availability from any of its blocks.