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The National Electric Power Regulatory Authority (NEPRA) has identified significant irregularities in coal procurement at the Sahiwal Coal Power Plant, according to findings from a probing committee. The irregularities primarily relate to competition, pricing, and procedural issues.

The investigation, launched last year, was prompted by allegations from bidders regarding collusion, inflated pricing, and restrictive bidding practices. Despite these claims, the NEPRA probe did not hold any party accountable for procurement decisions or accuse the plant’s management of misconduct.

The committee’s report highlighted that only one qualified bidder participated in the procurement process, which severely limited competition. While bidders alleged that a supplier had prior knowledge of the winning bid, enabling immediate coal delivery after contract execution, they failed to provide concrete evidence despite repeated reminders.

Additionally, concerns were raised about a significant price discrepancy, with coal reportedly supplied at Rs. 75,000 per ton while market rates were around Rs. 40,000. However, the committee was unable to verify this claim due to insufficient data.

The report also pointed out that NEPRA currently lacks formal guidelines for long-term coal procurement, a gap that the committee urged the regulator to address. It recommended the establishment of an independent authority to oversee coal pricing and procurement, the development of new NEPRA guidelines for long-term coal purchases, and the implementation of stricter transparency measures.

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