Lakhra Coal Power project caused loss of around Rs100 billion: AGP.

ISLAMABAD -- Auditor General of Pakistan has noted losses of around Rs 100 billion caused by the Lakhra Coal Power project due to under utilisation, financial mismanagement and design fault of the project. From its inception till 2017, Lakhra Power Generation Company Limited (Genco-IV) has incurred losses of more than Rs 100 to the exchequer, observed Auditor General of Pakistan in its special audit report 2017-18 on Lakhra Power Generation Company Limited. Generation loss of 12,768 MKWH due to under utilization of Lakhra power plant caused financial loss of Rs.76,610 million. During special audit of 150 MW Lakhra Power Station, it was noticed that the plant had generated 4,576.69 MKWH units since its installation against the utilization factor at 60% i.e. 17345 MKWH. The required specification of moisture, ash, carbon and sulphur was 32%, 19.52%, 22.30% and 5.20% respectively whereas actual specification of coal procured from M/s Lakhra Coal Development Authority was 6.6%, 30%, 28.5% and 7%, respectively. Due to this, 12,768 MKWH units were less generated which was a loss to the company.

Non-adherence to provision of PC-I resulted in laws generation of 12,768 MKWH causing financial loss of Rs.76,610 million at the rate of Rs 6 per KWH from the date of commercial operation of the plant up to financial year 2016-17. The matter was taken up with the management in May, 2018. The management replied that the very basic design of the Power Station was bad on the indigenous, locally available, low grade, Lakhra lignite (coal). The reply was not tenable as it was the management failure at the planning stage that the shortcoming like low quality coal could not be visualized at the outset of the project. DAC in its meeting held on July 19, 2018 did not agree with the management contention. As per inquiry report by GHCL dated 15-02-2017 coal quality being received at FBC Lakhra, based on fuel supply Agreement/ purchase order was not in line with design Specification. The DAC directed that the Ministry of Energy (Power Division) may send the case of LPGCL to NAB for investigation. According to revised PC-I of 150 MW Fluidized Bed Coal Filed Power Station at Lakhra cost of generation per KWH shall be 159.75 paisas. During Special audit of the Power Station, it was noticed from the E-Form that power plant did not achieve cost of generation at 159.15 paisas per KWH since the date of commissioning of the Plant 1995-96 to 2016-17 as cost of generation per...