Sindh Chief Minister Syed Murad Ali Shah has said that Thar Coal was the most affordable source of electricity generation in the country, however, due to transmission constraints, there are instances when the delivery of this inexpensive power is hindered, preventing the full potential of Thar Coal from being realized.
“Since 2019, 27000 GWh of electricity has been generated from Thar Coal Block-II at a significantly lower fuel price of Rs 4.8 per kWh, compared to Rs 19.5 per kWh for imported coal, which has resulted in a foreign exchange saving of approximately $1.3 billion, a communique said on Monday.
He said this on Monday while presiding over a 28th Thar Coal Energy Board meeting at CM House. The meeting was attended by Minister Energy Nasir Shah, MNA Shazia Marri, Chief Secretary Asif Hyder Shah, PSCM Agha Wasif, and Secretary Energy Musadik Malik. MD Thar Coal Tariq Shah. From the Federal government (through video link) Federal Finance Minister Mohammad Aurangzeb, Deputy Chairman Planning Commission, Federal Secretary Energy Fakhre Alam, and others attended the meeting.
Shah said that Thar Coal represents the most economical source of electricity generation within the country, and it is also locally sourced. “Despite its cost-effectiveness, the evacuation of power from Thar faces challenges due to transmission limitations,” he pointed out and added that both federal and provincial governments are working in collaboration to improve the electricity evacuation infrastructure from Thar to mitigate overall electricity costs so that the nation can truly benefit from the local source..
CM proudly said that Thar has successfully generated 2,640 MW of power, positioning it as the most affordable energy source in the country, thereby supplying electricity to over six million households.
Shah stated that since 2019, 27000 GWh of electricity has been generated alone from Thar Coal Block-II at a significantly lower fuel price of Rs 4.8 per kWh, compared to Rs 19.5 per kWh for imported coal, which has resulted in a foreign exchange saving of approximately $1.3 billion. CM said that this achievement was a realisation of the dream of Shaheed Mohtarma Benazir Bhutto, made possible under the guidance of President Asif Zardari.
During the presentation on the railway line, the Chief Minister was informed that the contract to lay the rail track from the Thar Coalfield in Islamkot to Chorr, a distance of 105 km, has been awarded to the Frontier Works Organization (FWO). Earthwork is currently in progress, and sleepers have been procured. Procurement of rails and fastening materials has also begun.
Additionally, a 9 km rail track is being developed from Bin Qasim to the Lucky Power Plant and Coal Unloading Facility for M/s Lucky Electric Power Company at Port Qasim.
The Chief Minister was told that a total of 756.10 acres of land has been identified for the project, of which 36 acres are private land that still needs to be acquired. At this, the Chief Minister directed Chief Secretary Asif Hyder Shah to instruct the Commissioner of Mirpurkhas Division to proceed with the land acquisition.
In Tharparkar, 242.12 acres of private land are being acquired, for which Rs 60.8 million has been allocated to the Commissioner of Mirpurkhas, as stated by the Chief Secretary.
The board was informed that a railway line is expected to be completed by December 2025, with the establishment of a special purpose vehicle (SPV). Furthermore, site clearance work is already in full swing.
The board also approved the recommendations for the Indexed/Adjusted Tariff Order concerning the motions for determining the indexations/adjustments of the tariff for the period from October 2022 to March 2024, submitted by the Sindh Engro Coal Mining Company (SECMC) for Phase II of the mine at Block II in the Thar Coalfield.
Additionally, the Thar Coal Board approved the extension of the Thar Coal Tariff Determination Committee members, Board directors Dr Fahad Irfan Siddiqui and Ammar Habib Khan, until August 2025.
The CEO of SECMC reported to the meeting that Chinese lenders are willing to support the expansion of the Block-2 mine, increasing its capacity from the current 7.6 million tons per annum (mtpa) to 11.2 mtpa. He stated that a financial close is expected to be achieved by the first quarter of 2025. The expansion will be financed locally, and a term sheet has already been signed with Meezan Bank to arrange the necessary funding. The Federal Finance Minister, the Chief Minister of Sindh, and the State Bank of Pakistan have all played crucial roles in this process.
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