IPPs bound to use Thar coal first.

ISLAMABAD -- 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.

If no local coal is available which meets the desired specifications, then IPPs shall proceed with spot purchases through a transparent process by reaching out to all suppliers through advertised publications with sufficient time given for response. The publication of the advertisement shall be for monthly bidding as well as for pre-qualification of coal traders for an extended period of 3-6 months. The term of bid, whether monthly or 3-6 months, would be decided by IPPs and the 'currency of contract shall be in Pakistani rupees.'

Imports are allowed only if specs do not meet plant requirements

The comprehensive Request for Quotation (RFQ) document would include all supply, quality, and payment-related details, along with the grievance redressal procedure for bidders. There would also be minimum acceptance and rejection standards of coal along with the penalty for any deviation from the required quality of coal including ash, moisture and sulphur content etc.

The tendering process would be well-documented and traceable and the quality of coal shall...