Mughal Energy Limited, a wholly owned subsidiary of Mughal Iron & Steel Industries Limited, has reached a key milestone in the development of its 36.5 MW hybrid power plant with the successful completion of steam blowing of the boiler and main steam lines, the company said in a stock exchange filing.
Following steam blowing, the plant also completed controlled cooling-down procedures and has now entered the final phase of testing and safety checks. Power generation and the start of commercial billing are targeted for March 2026, according to the company.
Mughal Steel previously said the project is expected to help lower energy costs through captive power generation. The group also anticipates additional efficiency gains once its rolling mill modernization project is completed, which will convert the facility into a dual-purpose rolling mill capable of producing both steel rebars and medium sections.
The combined investments are aimed at improving cost competitiveness and operational flexibility amid Pakistan’s challenging energy and steel market conditions.
With an annual production capacity of 1 mln tons, Mughal Steel manufactures billets, rebar, and structural sections, and also produces copper ingots, mainly for export to China.
