Aimed to reduce energy costs and reliance on imported coal, the federal government has decided to shift the coal-based power plants at Jamshoro, Thal, and Sahiwal to utilize locally sourced Thar coal.
The decision was finalized during the 28th meeting of the Thar Coal and Energy Board, chaired by Sindh Chief Minister Syed Murad Ali Shah. Key federal and provincial officials, including Energy Minister Nasir Hussain Shah and Federal Finance Minister Senator Aurangzeb, participated in the meeting.
The Sindh Chief Minister highlighted that electricity from Thar coal costs just Rs 4.8 per kWh, compared to Rs 19.5 per kWh from imported coal. He revealed that Thar Coal Block II currently produces 1,320 MW of electricity and has saved the country $1.3 billion in foreign exchange since operations began.
Additionally, Thar coal has generated Rs 15 billion in royalties and uplifted the local community with investments in schools, hospitals, housing, and solar energy for displaced families. About 80% of project employees hail from Sindh, further strengthening regional economic development.
Federal Secretary Energy Fakhar Alam confirmed that Prime Minister Shahbaz Sharif has instructed the Power Division to expedite feasibility studies for transitioning the three plants to Thar coal after which the total coal capacity of Thar Block II will increase to 20 million tons annually by 2030.
Progress on infrastructure is also underway, with the Frontier Works Organization (FWO) constructing a railway line from Islamkot to Port Qasim to streamline coal transport. Efforts to acquire additional land in Umerkot and Thar have also been prioritized.
The Thar Coal Board approved tariff adjustments for 2024 and extended the terms of board members Fahad Irfan Siddiqui and Ammar Habib Khan until August 2025.
Source: Daily Jang
