Kohat Cement Company Limited has clarified that there is no court order preventing work on its Kohat Cement coal-fired power plant project, dismissing media reports that suggested the Peshawar High Court had halted construction of the company’s 28.5-megawatt Coal Fired Power Plant (CFPP).
In a notice submitted to the Pakistan Stock Exchange (PSX), the cement manufacturer said the reports circulating in sections of the media did not accurately reflect the court proceedings. The company emphasized that the Peshawar High Court has not issued any direction to suspend or stop the construction or development of the project.
The clarification was issued to remove uncertainty among investors and stakeholders after media reports created confusion regarding the legal status of the project. Kohat Cement stated that the disclosure was intended to present the factual position and ensure that shareholders receive accurate information.
Construction Continues Under EPA Approvals
According to the company, construction of the Kohat Cement coal-fired power plant is continuing in accordance with all approvals granted by the Environmental Protection Agency (EPA). The company said the project remains on schedule and is being developed within the framework of Pakistan’s environmental laws and regulatory requirements.
Kohat Cement explained that the Peshawar High Court has not questioned the ongoing construction activities. Instead, the court observed that the commercial operation of the coal-fired power plant would remain subject to obtaining the necessary approvals from the Environmental Protection Agency before it begins generating electricity.
The company noted that this requirement is a routine legal obligation applicable to industrial projects and should not be interpreted as a restriction or suspension of construction work. It added that obtaining operational approval from the EPA is a standard regulatory process designed to ensure compliance with environmental standards before any industrial facility becomes operational.
28.5MW Project Supports Energy Strategy
The 28.5MW Coal Fired Power Plant forms part of Kohat Cement’s strategy to strengthen its energy infrastructure and improve operational efficiency. Like many cement manufacturers, the company has been exploring captive power generation solutions to manage energy costs and ensure a reliable electricity supply for its manufacturing operations.
Pakistan’s cement industry is among the country’s most energy-intensive sectors, with fuel and electricity accounting for a significant portion of production costs. Companies have increasingly invested in alternative energy sources and captive power projects to reduce dependence on the national power grid and improve cost competitiveness.
Company Reaffirms Environmental Compliance
Kohat Cement reaffirmed that it remains committed to complying with all applicable environmental regulations throughout the development and future operation of the project. The company stated that the power plant will only commence operations after fulfilling every legal requirement prescribed by the relevant authorities.
The company further said it will continue to comply with all applicable laws, rules, regulations, environmental guidelines, and standard operating procedures issued by competent authorities, including the Environmental Protection Agency. It stressed that environmental compliance remains an integral part of the project’s implementation and future operation.
PSX Filing Aims to Clarify Legal Position
In its filing to the PSX, Kohat Cement reiterated that the purpose of the disclosure was to “set the record straight” following reports that had created an inaccurate impression about the legal proceedings.
The clarification is expected to reassure investors after concerns emerged over the potential impact of the reported court proceedings on the company’s investment plans. Regulatory disclosures made through the Pakistan Stock Exchange play a key role in ensuring transparency and keeping shareholders informed of material developments affecting listed companies.
Project Remains on Track
The company’s statement indicates that there has been no interruption to the development of the project and that construction activities are proceeding under the approvals already granted by the Environmental Protection Agency. The only condition highlighted by the court relates to securing the necessary environmental clearance before the facility begins commercial operations, which Kohat Cement described as a standard regulatory requirement applicable to such projects.
By reaffirming its commitment to regulatory compliance and environmental safeguards, Kohat Cement has sought to address investor concerns while confirming that the Kohat Cement coal-fired power plant project remains on track. The company maintains that it will continue working closely with the relevant authorities to ensure the project fully complies with Pakistan’s environmental and legal framework before entering into operation.