Monday, May 2, 2011

The politicisation of the Thar coal project

A strong lobby in the country seems bent upon creating hurdles in the setting-up of plants to generate electricity from Thar coal reserves in Sindh.
The Sindh government, according to official sources, is well aware of the challenges facing the mega project, and the provincial political leadership fears the issue might be politicised, like in the case of the Kalabagh dam (KBD) project.
Despite a severe power shortage in the country and ever-increasing electricity rates, it seems really strange that the Centre is showing no eagerness to generate cheap electricity from the coal reserves, and no mentionable funds have been allocated in the Public Sector Development Programme (PSDP) of the federal budget 2010-11, for the project. It is another disturbing fact that the Pakistan People's Party (PPP) is doing almost nothing to initiate the mega project, though its main leadership belongs to the Sindh province, and the party is at the helm of affairs in the Centre as well as in Sindh.
The dream of generating electricity from Thar coal reserves will take a long time to come true, even if the government begins work on the project today. To attract foreign or local investment, Thar would need basic infrastructure, including highways, link roads, electricity and water etc. No heavy machinery could be transported to the proposed sites in the absence of a road network. The most important in infrastructure is the setting-up of a high tension transmission line for distributing power in different parts of the country. At the moment, the infrastructure is non-existent. The Sindh government has, for the first time, suggested allocation of Rs. 10 billion for the high voltage transmission line in the upcoming budget of financial year 2011-12. Sindh Chief Minister, Syed Qaim Ali Shah, had expressed the hope in his budget speech that the federal government would also share its responsibility and contribute to the funding for developing infrastructure in Thar.
Earlier, the government had planned a Rs. 5512 million project in collaboration with China, to install a 500-KV power transmission line from Thar. Besides, in April 2002, a state-run Chinese company, Shenhua Group Corporation, was assigned to develop block-two of the Thar coalfields, accepting its proposal to establish a 600-MW power plant at the mine-mouth with associated captive coalmines. The Shenhua Group carried out studies related to coal-geological and hydro-geological possibilities in the area, and a project feasibility report was finalised.
Unfortunately, the project ran into various snags. Since then, a number of foreign investors have shown interest to develop these resources, but without any breakthrough. In April 2005, AES-Oasis Ltd. of the USA showed interest in developing an integrated mining-cum-power project of 1,000-MW capacity, utilising block-one Thar resources. The sponsor, after a year, finally backed out.
According to an estimate, at least Rs. 100 billion would immediately be required for setting up a high voltage transmission line and other infrastructure in Thar to start work on the actual coal power production plants. Keeping in view this huge funding, allocation of only Rs. 20 million in the PSDP in 2010-11 budget is negligible.
Another important factor that should be mentioned here is non-inclusion of the Thar coal power project in the priority list of the Planning Commission of Pakistan. As mentioned on its official website, the commission authorities have put emphasis on generating electricity through hydel and thermal power projects only. However, a Planning Commission document has mentioned, in its feasibility study, the use of Thar coal for the cement manufacturing industry. The document says 90 per cent of the cement manufacturing plants have abandoned furnace oil and opted for coal energy during the past decade. It has helped save a huge amount of precious foreign exchange which was earlier spent on import of furnace oil. With this major change in the cement industry's energy needs, coal consumption has gone up to five million tonnes per annum.
The Sindh Thar Coal and Energy Board is trying to lure investors into investing in Thar coal fields and projects. The board was set up by the Sindh chief minister, who is also the head of the board, to establish the ownership rights of Sindh over the coal reserves. However, the lobby creating hurdles in the Thar coal project seems very strong. The lobby might be opposing the plan to deprive Sindh of a mega energy project, say the sources. The lobby consists of oil importers, rental power brokers and other vested interests, according to the Sindh Thar Coal Board officials.
International energy politics might also have a hand in the delay of the project. The World Bank had organised an energy conference in Washington in 2009, to convince the world financing groups to invest in Thar coal in Sindh. However, in the same year, an environment conference was held in Copenhagen, which strongly stressed the need for minimising the use of coal for generating energy, to save the environment from hazardous effects of coal burning.
During the Copenhagen summit, the US advocated development of no, or low, carbon energy sources in the developing countries. That the US opposes coal-fired power is something difficult to believe because it has 600 coal-fired plants within the country which provide more than half of its energy supply. Another 60 coal-fired plants are at various stages of planning. The US refuses to accept limits to its domestic greenhouse gas emissions, though it did agree, for the first time, to modest cuts in Copenhagen.
The World Bank wrote a letter to the Government of Pakistan, seeking assurance that the Thar coal power generation projects would not affect the environment adversely. A Sindh government official, privy to the developments, alleged that the federal government was sitting on the letter and no reply was sent to the WB in this regard. The Sindh government, say the sources, is upset over the situation. The newly-appointed Federal Finance Minister, Dr. Abdul Hafeez Sheikh, who hails from Sindh, has reportedly talked to the WB authorities and tried to convince them that the use of new technology would help minimise the hazardous effects of coal use for power generation. However, Sindh Chief Minister, Syed Qaim Ali Shah, has alleged that a lobby in the federal government bureaucracy does not want power generation through the Thar coal reserves and it is creating hurdles in this regard.
The World Bank, perhaps, has become cautious after facing worldwide condemnation for extending a $3.75 billion loan to South Africa in April 2009, to build one of the world's largest coal plants. The decision drew sharp criticism, even from the Obama Administration. An international coalition of grassroots, church and environmental activists launched a massive protest against the controversial loan, saying that it would hurt the environment by putting out 25 million tonnes of carbon dioxide a year.
In Pakistan, the World Bank's decision not to finance the Thar coal project apparently for environmental reasons is not convincing enough, because the country's industry does not contribute much to carbon emissions and its carbon footprint is one of the lowest. So, not much harm to the ecology could be expected from the Thar coal project on completion.
Engro Energy, which has leased a block at Thar, wants the government to convince the WB in this respect because Pakistan happens to be one of the least polluters.
Meanwhile, Dr. Samar Mubarakmand, a nuclear scientist, who earned fame for his instrumental role in the 1998 nuclear tests, is working on a project for generating electricity through gasification of the Thar coal reserves. It will be ready by next year, and if implemented successfully, it will eliminate the problem of pollution by converting Thar coal into clean energy. According to Dr. Samar, the Thar coal reserves of 175.5 billion tonnes, discovered in 1992, have potential to generate 5,000 MW for at least 800 years.


R

Sunday, May 1, 2011

Why Most People Never Get Rich

Most people will never become rich no matter how high their IQ or how hard they work, or how much money they earn. Most people will spend their lives having the problem of not enough money and they will fail to ever live the life that they dreamed. By understanding why most people never get rich you can learn how to become rich.
Before I start telling you why most people never get rich I first want to debunk a few wealth myths that may be holding you back from becoming rich. Firstly the myth that you need to earn a lot of money to become rich is false, many people who earn millions become poor. You also don't need to be smart to be rich. Some of the richest people in the world dropped out of high school and college. You don't need money to make money, money can be made from nothing, or you can leverage other people's money to become rich. So now let me explain why most people never get rich.
Most People Save Money
Most people subscribe to the idea that you need to live frugally and save money in order to become rich. But there are a few problems with saving money that explain why this method keeps millions of people from becoming rich.
Firstly, money goes down in value over time. When my mum was a kid she could buy a bag of lollies for a penny, now I can't even get a bag of lollies for $1. Money loses its value as more money is printed and cost of living goes up, so by saving money you are actually losing money.
Also interest earned on money is heavily taxed, so although you are earning 4% on your money it is likely you are paying 30-50% in tax. That is an effective 2% return on investment. Seeing as inflation is around 3-5% you are going backwards.
Also just saving money is bad because you are not using any leverage. You are only getting money from working (and you can only work so hard) and you are only using your own money to invest. Your return is therefore very limited.
Most People Live Below Their Means
Most people live their entire lives trying to live below their means. They live frugally and try to spend less than they earn. But rich people don't try to live below their means they try to increase their means. Rich people are constantly seeking new investments that will earn them money without them having to do anything. By constantly seeking to increase their means rich people become richer and richer, and by constantly trying to live below their means poor people remain poor.
Most People Invest Not To Lose
This is probably the number one reason most people fail to become rich. It is not how much money you earn from your job that determines whether or not you can become rich. Generally it is your investing that will make you rich or keep you rich. Most people invest not to lose, but they don't invest to win. Thus they never get a good return on investment because they are too busy trying to play it safe.
Most People Buy Liabilities Not Assets
Even though most people are afraid of losing money they ultimately lose a lot of money because they buy liabilities instead of assets. Most people will buy nice cars, a big house and other expensive liabilities that take money out of their pocket every week. Rich people use their money to buy assets that put money in their pocket on a regular basis. So their income is constantly going up instead of their debt constantly going up.
Most People Are Financially Illiterate
Most people are so afraid of losing money because they are not financially educated. They don't know much about money and thus they cannot make solid investment decisions. They are constantly looking for the latest 'hot tip' about he stock market or property market and they are constantly buying into 'get rich quick' schemes. Or they spend their money on the lotto and blame their finances on the government. Most people never become rich because they go to school and college to learn but they never learn how to become rich.
Join the thousands of people already learning how to become rich WITHOUT making any more money. You can learn how to become rich without any costs for training. Go to http://www.richacademy.com and sign up to start your free training today.


Ancient Sites Encroached Upon Tomb Of Shah Baharo



Over 20 families have constructed houses at the site after demolishing graves, sources in the department said.

The intrusion that began in 1980-81 still continues amidst ineffective and insufficient measures to discourage the practice.

Mohammed Bakhsh Magsi, a primary teacher in collusion with land grabbers, has not only constructed his house but is also selling land after bulldozing graves, the department confirmed.

The department kept raising the matter with the revenue department for ‘demarcation' of the land which encompasses the tomb of Shah Baharo and the graveyard around it. The District Coordination Officer of Larkana has referred the matter to Mukhtiarkar for urgent measurement.

A cursory eye on the existing condition of the tomb unveils the volume of negligence of the department. The outer bricks of the tomb are crumbling while the platform to the entrance is damaged.

The inscriptions on the glazed tiles have also faded with no replacement in sight.

People, unconcerned with the vanishing beauty and historical background of the tomb of a general of Kalhora period, have ruthlessly trampled over the history.

When this correspondent visited the site, no attendant of the department was seen there. The old wooden gate itself speaks of the degree of negligence by the concerned authorities.

The Persian inscriptions, quite readable on the main gate are fast vanishing and if the situation remains unchanged, the inscriptions depicting the history would disappear.

A visit to the shrine reveals how the broken tiles are collected and kept in the windows of the tomb for further decay.

The repair and maintenance work carried out in past is invisible now and the tomb badly needs repair and restoration coupled with the immediate removal of the encroachments from the site.

TAJJAR BUILDING: Tajjar building is another famous old structure, situated in the heart of the city, is similarly ignored by the departments concerned.

Tajjar building was built in 1833 in Larkana as the temporary resting place for Nawab Wali Mohammad Leghari, a prime minister of the Khairpur state. He was buried temporarily during Kalhora period in this building and then his grave was relocated to Hyderabad.

Prior to his death, Nawab Leghari and later British officials used this building as public meeting place, anthropologist Manzoor Kohyar said.

In Z.A. Bhutto's days restoration and renovation work began on this building, which was declared as protected monument on May 20, 1980.

Shafqat Hussain Unnar, former assistant resident director of Pakistan National Centre had handed over the possession of Tajjar building to Ms Salma Sultana, custodian archaeology museum of Mohenjodaro on October 7, 1981 along with a two-room quarter.

Gulab Khan Metlo, the caretaker of Tajjar building, in an open kutchari on June 3, 2008 brought to the notice of the then DCO Larkana that Rasool Bakhsh Solangi, a peon of Larkana Municipal Committee, had encroached upon the two-room quarter. The matter is still pending.

JHUKAR-JO-DARO: Just eight kilometers away from Larkana on Larkana-Karachi road is Jhukar-jo-daro which, with the ravages of time, vanishes bit by bit.

Just in a visit you would see a rice mill, a brick kiln, rice fields and many houses constructed around this protected site where you seldom find any attendant to stop visitors and locals from inflicting damages to this historical site.

Paddy cultivation becomes a common practice around it which harms both the ruins and the history while frequent encroachments have disfigured this protected site.

In the recent past deputy director Mazhar Ali Mirani of the department of archaeology, following a visit to the site, had in a report maintained that unchecked encroachment was damaging the ruins.

The site, spreading over 40 acres of land, was being used as firing range for the recruits of police training school Larkana.

The curator of archaeological museum, Mohenjodaro, in a letter to the Larkana DCO on August 13, 2008 had indicated towards this practice. This site falls under the administrative control of the curator of Mohenjodaro.

The site is protected under the Antiquity Act 1975, the curator said.

Bullet empties are commonly found on the site while unauthorised digging of the site at different portions by the locals has further damaged the site, sources in the department said.

The adjoining villagers more often find artefacts particularly during the rainy season and sometimes they sell them out at good prices. This demands urgent measures to protect the sites.