Sheikhupura power station

From Global Energy Monitor

Sheikhupura power station is a proposed 55-megawatt (MW) coal-fired power station in Punjab province, Pakistan.


The map below shows Mughal's steel plant near Sheikhupura, in Punjab province. The coal plant would power the steel mill.

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In July 2014, the chief minister of Punjab said the government was planning to build 110 MW coal power plants (2 x 55 MW) near industrial load centers in seven big cities: Sheikhupura, Faisalabad, Gujranwala, Sialkot, Gujrat, Multan and Lahore.[1]

In July 2015 Mughal Group Industries said it planned a 55MW coal-fired power plant in Sheikhupura with an estimated cost of US$140 million. The group intends to implement the project through a special purpose vehicles named Mughal Energy Limited, which has approached the National Electric Power Regulatory Authority (Nepra) seeking a generation license.[2]

The project would be aimed at meeting the 39 MW power requirements of Mughal Steel Mills, the second largest steel manufacturing concern in Pakistan. It would use circulating fluidized bed (CFB) technology, 70 percent imported coal, and recirculating cooling technology supplied from ground water. A special purpose vehicle named Mughal Energy Limited would build the project, estimated at US$141.7 million and financed withy 75:25 debt to equity. It would have gross capacity of 55 MW and net capacity of 49 MW, with 29 MW used by Mughal Steel, 10 MW dedicated grid dispatch, and 10 MW surplus power dispatch.[3]

There were no further updates on the project until June 2019, when it was reported that Mughal Energy was again planning the 55 MW captive coal plant, at a proposed investment of US$137 million. According to a company document: "Given the prevailing energy shortages and the ever-increasing cost of electricity, the board of Mughal Group of Industries is assessing and evaluating the proposal of setting up a coal power generation facility."[4]

Project Details

  • Sponsor: Mughal Energy Limited
  • Parent company: Mughal Group Industries
  • Location: Mughal steel mill, Sheikhupura district, Punjab province, Pakistan
  • Coordinates: 31.6526, 74.1808 (approximate)
  • Status: Announced
  • Capacity: 55 MW
  • Type:
  • Projected in service:
  • Coal Type:
  • Coal Source:
  • Source of financing:


The Punjab government in Sheikhupura, Pakistan planned to build a coal power plant and allotted 9,000 acres of land for the project. However, local environmentalists filed a court plea against the power plant, citing increases in environmental pollution. Since the District Coordination Office in charge of the Sheikhupura plant admitted that the environmental hazards had not been fully assessed, the Lahore High Court halted the power plant project.[5]

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