The project will see an investment of around $400m and is expected to be completed in two-and-a-half-years.
K-Energy, a subsidiary of K-Electric, has signed a contract with Harbin Electric of China in 2013, under which the latter will construct coal-fired boilers for the two units of BQPS-1.
The coal-based units will be equipped with emission-controlled technologies in compliance with all applicable local and international environmental regulations, the company said.
K-Electric spokesman said: "Issuance of generation license is a major breakthrough and now Nepra will determine tariff for the project which will ultimately provide relief to the end consumer.
"KE believes in producing electricity from coal and will provide fuel security, diversification and reduction in cost of generation by substituting expensive fuel oil with affordable fuel in the existing fleet of K-Electric.
"This was done in order to showcase KE’s commitment to pioneer coal conversion and which will also help reduce the power tariff by utilising low-cost fuel sources for its electricity generation."
