Sindh Chief Minister Approves Strategic Initiatives for Thar Coal & Energy Board

Strategic Insights -

Sindh Chief Minister Syed Murad Ali Shah presided over the 29th meeting of the Thar Coal & Energy Board to review ongoing projects and approved several strategic initiatives aimed at enhancing the region's coal mining and electricity generation capabilities. The meeting, held at CM House, was attended by provincial Energy Minister Nasir Shah, Education Minister Syed Sardar Shah, Irrigation Minister Jam Khan Shoro, and other key stakeholders. The Chief Minister emphasized the government's commitment to providing affordable power through the use of indigenous resources, thereby reducing reliance on imported fuels.

Key Takeaways:

  • The Thar Coal & Energy Board (TCEB) has approved several strategic initiatives aimed at enhancing the region's coal mining and electricity generation capabilities, including the extension of the 18% Internal Rate of Return (IRR) incentive on equity for Thar coal mining projects until December 31, 2026.
  • The Board has ratified the indexed and adjusted coal tariff orders proposed by the Sindh Engro Coal Mining Company (SECMC) for the periods of October to December 2024 and January to March 2025.
  • The Commercial Operations Date (COD) stage tariff for Sino Sindh Resources (Pvt.) Ltd. (SSRL) has been sanctioned, which operates a coal mine with a capacity of 7.8 million tonnes per annum at Thar Block-I.
  • The Thar Coal & Energy Board Act, 2011, has been amended to empower its Executive Arm to conduct third-party evaluations of water tariff indexation.
  • The Board has acknowledged ongoing research by firms like FFC, which are exploring the conversion of coal to fertiliser and cement solutions.
  • The Thar Railway Link Project is 35% complete and is projected to enhance coal logistics and regional connectivity by its target completion date in January 2026.

Statistics:

  • Over 2,600 MW of power generation capacity has been generated from Thar's coal power initiatives since 2019.
  • Electricity generated from Thar coal costs around Rs 4.8 per kWh compared to power from imported coal (roughly Rs 19.5 per kWh).
  • The use of Thar coal has resulted in a savings of approximately $1.3 billion in foreign exchange for the country.
  • The Sindh Government estimates that Thar coalfield contains around 175 billion tonnes of lignite coal, making it one of the largest coal deposits globally.

Sources:

  • "Thar Coal & Energy Board 29th Meeting" by The Express Tribune, without a publication date.
  • "Pakistan's Thar Coal: A Promising Solution for Energy Security" by Sindh Engro Coal Mining Company (SECMC), without a publication date.
  • "Thar Coal: A Game Changer for Pakistan's Energy Sector" by Tariq Shah, Managing Director of TCEB, without a publication date.