• Electricity cost using local coal is Rs4.8/KWh, compared to Rs19.5/KWh for imported coal, says CM Murad
• PM has ordered conversion of Jamshoro, Sahiwal, Port Qasim and Hub power plants from imported to Thar coal, meeting told

KARACHI: Sindh Chief Minister Syed Murad Ali Shah has said that the federal and provincial governments are working on a plan to improve electricity transmission infrastructure from Thar to mitigate overall electricity costs so that the nation can truly benefit from the local source of coal.

He said this at the 28th meeting of the “Thar Coal Energy Board” held at the CM House.

Sindh Energy Minister Nasir Shah, MNA Shazia Marri, Chief Secretary Asif Hyder Shah, Energy Secretary Musadik Malik and Thar Coal managing director Tariq Shah attended the meeting, which was also joined by Federal Finance Minister Mohammad Aurangzeb, Federal Energy Secretary Fakhre Alam and other senior officials through a video link.

The CM said that Thar had successfully generated 2,640 MW, positioning it as the “most affordable energy source in the country”, supplying electricity to over six million households.

“Since 2019, 27,000 GWh of electricity has been generated from Thar Coal Block-II at a significantly lower fuel price of Rs4.8 per kWh, compared to Rs19.5 per kWh for imported coal, which has resulted in a foreign exchange saving of approximately $1.3 billion,” he explained.

However, Murad said that due to transmission constraints, there were instances when the delivery of that inexpensive power was hindered, preventing the full potential of Thar coal from being realised.

“Despite its cost-effectiveness, the evacuation of power from Thar faces challenges due to transmission limitations. However, both the 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,” he said, according to a statement issued after the meeting.

Railway line from Thar to upcountry

The CM said that once a railway line was laid, transportation of coal from Thar to upcountry would be easy and cheap.

During the meeting, the chief minister was informed that the contract to lay the 105-kilometre-long track from Islamkot to Chhor had been awarded to the Frontier Works Organisation (FWO) while earthwork was currently in progress.

The board was informed that a railway line was expected to be completed by Dec 2025, with the establishment of a special purpose vehicle (SPV). Furthermore, site clearance work is already in full swing.

Additionally, it was informed that a nine-km rail track was 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 had been identified for the project, of which 36 acres were private land that still needed to be acquired.

The meeting was informed that in Tharparkar, 242.12 acres of private land was being acquired, for which Rs60.8 million had been allocated to the commissioner of Mirpurkhas division.

During the meeting, the federal secretary said that the prime minister had issued directives for the conversion of the Jamshoro, Sahiwal, Port Qasim and Hub power plants from imported coal to Thar coal.

He said that a study would be conducted before converting the plants on Thar coal.

The CEO of Sindh Engro Coal Mining Company (SECMC) reported to the meeting that Chinese lenders were willing to support the expansion of the Thar 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 was 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.

Published in Dawn, December 3rd, 2024