KARACHI, Feb 14: Clearing the air about who – between the federal and provincial governments – has rights over Thar’s coal reserves, Sindh Chief Minister Qaim Ali Shah told the Sindh Assembly during Saturday’s question hour that the ‘misunderstanding’ between the centre and Sindh had been cleared and as far as Thar’s coal and energy was concerned, the province was in control.

The chief minister – who holds the portfolio of mines and minerals – was replying to a question asked by the PPP’s Nadeem Ahmed Bhutto about representation of the federal government in the Thar Coal Authority and the legal status of the authority after the formation of the Thar Coal and Energy Board (TCEB). Jam Mehtab Hussain Dahar, Minister for Population Welfare, also answered queries regarding his department and spoke on behalf of the CM before Mr Shah entered the house.

“The Thar Coal Authority does not exist anymore as the federal government vide its notification … dated 11/10/2008 has withdrawn its earlier notification regarding the constitution of the Thar Coal Authority.

“The Thar Coal and Energy Board was established vide a notification by the government of Sindh … which will act as a bridge between the provincial and federal governments in development of Thar coal field on a fast-track basis,” the chief minister told the house in his written reply.

“There was a misunderstanding between the federal and provincial governments over subjects. As per the Constitution, coal is a provincial subject. Previously, the federal government did not let the province deal with it. After the new government took over the matter was settled once and for all,” Qaim Ali Shah said in response to a supplementary question, in which a member had asked what the need was for federal presence on the board if it was a provincial subject.

“Both the province and the centre are interested in power plants to deal with the acute power crisis. There is now one-window operation. The province will deal with energy and coal as far as Thar is concerned,” he added, while informing the house that the federal water and power minister would be the vice-chairman of the board.

He said that a Korean company had already been given a block in the Thar coal field, adding that the firm was interested in setting up a 300 megawatt power plant. “The World Bank is trying to find investors for block I, the most important block.” Qaim Ali Shah added that an MoU might be signed by President Zardari on his upcoming trip to China as the Chinese were interested in setting up a 1,000MW plant after the exploitation of coal.

Earlier, the NPP’s Arif Mustafa Jatoi had asked the chief minister if the responsibilities of the Sindh Coal Authority had been transferred to the Thar Coal Authority.

In the written reply, the CM pointed out that while the Thar Coal Authority no longer exists, “the Sindh Coal Authority is a statutory body established under the Sindh Coal Authority Act, 1993 … it will continue to function as per its statutory mandate.

“The Sindh government vide its notification dated 22/7/2008 constituted the Thar Coal and Energy Board headed by the chief minister Sindh, comprising the federal minister for water and power, federal minister for law and justice, deputy chairman planning commission, two provincial ministers, secretary ministry of water and power, chief secretary Sindh and one eminent person nominated by the government of Sindh as members. The managing director of the board will also be a member as well as the secretary of the board.”

The PML-F’s Nusrat Abbasi asked who the two ministers and eminent person on the board were, to which Mr Dahar replied that Irrigation Minister Murad Ali Shah, Revenue Minister Saifullah Dharejo and Asad Ali were appointed to the board.

Replying to a question about the amount spent on the feasibility report to study deposits of granite in Thar, Jam Mehtab said Rs50 million had been awarded.

When Arif Jatoi asked if the ministers nominated on the TCEB were by name or designation, Qaim Ali Shah replied that it was by name as the ministers’ portfolios might change anytime.

Nadeem Bhutto had asked if it was true that leases for coal mining and exploration licenses had been granted to companies in Thatta, Badin and Tharparkar districts from 2005 to 2006.

The chief minister, in his written reply, said that a Chinese company had been granted a mining license in Thatta while licenses for coal exploration had been granted in the aforementioned districts.

He added that the provincial government was trying to get permission to set up a 200MW power plant while there was also a proposal to set up a 300MW plant in Lakhra.