Punjab has sizeable coal reserves, estimated at 235m tonnes, of varying quality in the Salt Range. Most of the mining activity is manual and primarily targeted for brick kilns and the cement industry.
The main limitation is the absence of bankable data for different blocks of coal for complete and consistent exploitation. There is chronic under-reporting of current extraction, limiting the options for its consideration as fuel for power generation. Coal and hydro are the preferred sources for generating electricity, as they are relatively cheaper than other fuels.
According to the provincial Annual Plan and Strategy 2011-12, the target for coal-based projects is to generate or initiate 900MW against 3,206MW from all sources, over the next three years.
The primary focus will be on private sector projects, where the provincial government will enter into a power purchase agreement as well as an assured coal supply agreement with private power producers. Procuring and supplying coal will be the responsibility of the government-run Punjab Mineral Company. The power producers, however, will have a freedom to select their coal supply sources.
