KARACHI: Sindh Chief Minister Syed Murad Ali Shah on Monday said that coal from Thar is the cheapest source of electricity in the country, but due to transmission constraints, there are cases of obstruction in the supply of this cheap electricity. Its full potential is inhibited. being realized.
“Since 2019, Thar Coal Block-II has generated 27,000 GWh of electricity at a significantly lower fuel cost of Rs 4.8 per kWh per kWh, while imported coal 19.5 per kilowatt hour for , resulting in foreign exchange savings of about $1.3 billion.
During the 28th meeting of the Thar Coal Energy Board chaired by Shah at the Chief Minister’s House, he emphasized that Thar Coal is the cheapest source of power generation in the country, and that it is locally sourced as well. goes
“Despite its cost-effectiveness, the extraction of power from Thar faces challenges due to transmission limitations,” he said, adding that the federal and provincial governments are working to reduce the overall cost of power for the country. They are working together to improve Thar’s electricity generation infrastructure. Making the most of local resources.
The Chief Minister said that Thar has successfully generated 2,640 MW of electricity, calling it the cheapest source of energy in the country, thus providing electricity to 6 million households. Jamshoro, Sahiwal, Port Qasim and Hub Power Plants to substitute Thar coal with imported coal.
Alam said a study would be done before switching them to imported coal. Shah said that once the railway line is laid, transportation of coal from Thar to upcountry will be easy and cheap.
During the presentation on the railway line, the meeting was informed that the contract for laying 105 km rail track from Thar Coalfield to Chur in Islamkot has been awarded to Frontier Works Organization.
Ground work is currently underway, and sleepers have been procured. Procurement of rails and lashing equipment has also been started. A 9 km rail track from Bin Qasim to Lucky Power Plant and a coal unloading facility for Lucky Electric Power Company at Port Qasim are being developed.
A total of 756.1 acres of land has been identified for the project, of which 36 acres is private land that is yet to be acquired. Shah directed the Chief Secretary Asif Haider Shah to direct the Mirpurkhas Commissioner to proceed with the acquisition of the land.
CS Shah said that 242.12 acres of private land is being acquired in Tharparkar, for which Rs 60.8 million have been allocated to the Mirpurkhas Commissioner. The railway line is expected to be completed by December 2025 with the establishment of a special purpose vehicle. Site clearance work is already in full swing.
The meeting also approved the recommendations for Indexed and Adjusted Tariff Order for determination of Tariff Indexes/Adjustment for the period from October 2022 to March 2024, for Phase-II by Sindh Engro Coal Mining Company (SECMC). Presented for of Mine in Block-II at Thar Coalfield.
The meeting also approved the extension of the term of Thar Coal Tariff Determination Committee members and board directors Dr. Fahad Irfan Siddiqui and Amar Habib Khan till August 2025.
The SECMC CEO said Chinese lenders are ready to help expand the Block-II mine, increasing its capacity from 7.6 to 11.2 million tonnes per annum. Financial close is expected by the first quarter of 2025, he said. Financing will be provided locally, and a term sheet has already been signed with Meezan Bank to arrange the necessary funding, he added.