Summary The plant will have melting and re-rolling capacity of 150,000 to 200,000 tons per annum
MIRPUR KHAS (Dunya News) – Mirpurkhas Sugar Mills plans to diversify its business operations, deciding to set up dual fuel bagasse power plant and a steel rebar manufacturing plant with combined cost of Rs6.50 billion.
In a notification issued on Wednesday, Mirpurkhas Sugar Mills informed Pakistan Stock Exchange that in April 2016, the company set up a 100 percent owned subsidiary by the name of Mirpurkhas Energy Limited to producer power from bagasse.
In this regard Energy Company applied for and received letter of intent, generation license and consent for power supply to the national grid successfully.
Furthermore, the upfront tariff with National Electric Power Regulatory Authority was awarded to the company along with letter of support from Alternate Energy Development Board. Subsequent to the award of tariff by NEPRA dismissed the review motion filed by CPPA-G against the tariff, it did not make any change with respect to the date of COD, which was kept from the date of award of upfront tariff.
CPPA-G has also filed a petition in the honorable Islamabad High Court against the NEPRA decision, which is being contested by the company.
Given the complexities involved and expected delays as explained above, the board of directors of the company has decided against pursuing the Mirpurkhas Energy Limited project. Instead has decided to setup a captive 26MW dual fuel bagasse based power plant to supply power to Mirpurkhas Sugar Mills and its various businesses.
The company in the statement said keeping in view the boom in construction activities in the country and taking advantage of the availability of power based on bagasse, the board of directors of the company has decided to establish a steel rebar manufacturing plant.
The plant will have melting and re-rolling capacity of 150,000 to 200,000 tons per annum. The power project along with steel plant will be established at a cost of approximately Rs 6.5 billion.
Establishment of steel project along with power plant will allow the company to diversify its business operations. Furthermore, it will increase revenues for the company, which is expected to enhance its profitability, thus enabling it to provide adequate return to its shareholders.
The project will take approximately 24-30 months to become operational.
