National Electric Power and Regulatory Authority (NEPRA) has rejected the application of Nishat Energy Limited (NEL) for the grant of generation licence for its proposed 660 MW imported coal based generation facility/thermal power plant in Rahim Yar Khan, read a bourse notification.
The sponsors had considered obtaining 100 percent of project debt from Chinese banks, with assistance from a reputable Chinese equity partner as an overseas investment loan or an ECA tied financing package.
This power project was listed under the China-Pakistan Economic Corridor (CPEC) and financing was to be provided by Chinese banks. The construction of this power plant was expected to take 48 months, and commissioning was expected to take place by the end of 2020.
The project came under the umbrella of Nishat Power Ltd., in collaboration with Lalpir Power Ltd. and PakGen Power Ltd.
Officials further mentioned that in the recent frenzy of development expenditure in energy production, the government is currently producing surplus energy.
Hence, due to the government’s inability to buy power from local producers, Power Generation licenses are being rejected for new applications.
Nishat Energy Ltd., had planned to install a 660 MW power plant to be run through imported coal based generation facility/thermal power plant in District Rahim Yar Khan. The company had submitted an application to NEPRA for a license to run the power plant.