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Power Cement

Power Cement, Burj Solar Energy sign deal to set up power plant

The Power Cement Limited has signed an agreement to set up a 7MW solar power plant at its existing site for the procurement of electricity, a bourse filing said on Friday.

“The company has signed an agreement with Burj Solar Energy (Private) Limited on January 6, 2022 for procurement of electricity on a fixed tariff (around 40 per cent lower than the existing grid tariff) for the next twenty years,” the filing stated.

According to the agreement, Burj Solar will invest by setting up a dedicated 7MW solar power plant at the existing site of the Power Cement, and the plant is expected to be operational within the next six to eight months.

In order to curtail the impact of swelling electricity expense, which is a material component of cement manufacturing cost, the company decided to explore environment-friendly renewable energy solutions without incurring any major capital expenditures, it added.

The rapid growth of solar and wind power offering exponential cost reduction has compelled the industries and businesses to modify their energy consumption mix, as more and more industrial units are opting for distributed power generation to ensure reliability and cost savings.

Pakistan cement production rises 27% in 12MFY21

International news agency CEMNET reported, The overall output of the Large-Scale Manufacturing Industries Index (LSMI) in Pakistan increased by 14.9 per cent for July 2020-June 2021 compared to July 2019-June 2020, including local cement production, FBS estimated. Industry attributes the increase in production on the back of a boost in local demand by housing schemes.

During the last fiscal year of July 2020-June 2021, Pakistan’s cement production increased by 27.3 per cent, YoY to 49.803Mt compared to 39.121Mt in the preceding fiscal year. The upward trend in cement output was also noted in June 2021 alone, when it rose by 32.4 per cent to 4.666Mt versus 3.523Mt in the same month last year.