Oracle Coalfields’ (LON:ORCP) coal–fired power plant in the Thar desert in Pakistan has taken another step forward with a ‘no objection’ letter from a key government agency.
The Central Power Purchasing Agency Guarantee Limited (CPPA), which issued the letter, buys electricity on behalf of Pakistan’s state-owned electricity grid operator, NTDC.
Electricity from the 600Mw plant can be transmitted on a high voltage transmission line planned to connect Thar to the national grid, CPPA also confirmed.
Oracle is working towards a letter of intent for its subsidiary Thar Electricity (Private) Limited from the Ministry of Water & Power.
Once it gets that it can sign a Power Purchase Agreement with NTDC along with a government guarantee of payment.
Shahrukh Khan, Oracle’s chief executive, said: "The Federal Government's concurrence to power evacuation from our project to the national grid is an important milestone towards financial close.”