Sindh Chief Minister Syed Murad Ali Shah presided over the 29th meeting of the Thar Coal & Energy Board (TCEB) to review ongoing projects and approved several strategic initiatives aimed at enhancing the region’s coal mining and electricity generation capabilities.
The CM stated that since 2019, Thar’s coal power initiatives have already generated over 2,600 MW of power generation capacity, supplying electricity to millions of households at a significantly lower cost, around Rs 4.8 per kWh compared to power from imported coal (roughly Rs 19.5 per kWh, resulting in a savings of approximately $1.3 billion in foreign exchange for the country.
The meeting, held at CM House, was attended by provincial Energy Minister Nasir Shah, Education Minister Syed Sardar Shah, Irrigation Minister Jam Khan Shoro, MNA Shazia Atta Marri, Chief Secretary Asif Hyder Shah, Secretaries, and Members of the Board. (On video link) Federal Law Minister Azam, Nazeer Tarar and other federal government representatives.
The chief minister happens to be the chairman Thar Coal & Energy Board (TCEB). The Board deliberated on pivotal measures to bolster Pakistan’s indigenous coal-based energy sector.
The Board, recognised as a decisive entity for accelerating Thar coal development, reviewed ongoing projects and unanimously approved several strategic initiatives aimed at enhancing the region’s coal mining and electricity generation capabilities.
The Board 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. This decision aligns coal pricing with current cost indices, ensuring stability and predictability in the fuel supply for power generation.
Further advancing the Thar coal project, the Board sanctioned the Commercial Operations Date (COD) stage tariff for Sino Sindh Resources (Pvt.) Ltd. (SSRL), which operates a coal mine with a capacity of 7.8 million tonnes per annum at Thar Block-I.
The approval signifies a major milestone, facilitating the full-scale launch of commercial mining operations that are crucial for domestic energy production.
In a bid to enhance investment confidence in the Thar coal sector, TCEB has extended the 18 per cent Internal Rate of Return (IRR) incentive on equity for Thar coal mining projects until December 31, 2026. This extension aims to provide financial assurance to both current and prospective investors, mitigating potential delays in project timelines due to adverse investment conditions.
The Board also approved amendments to the Thar Coal & Energy Board Act, 2011, which will empower its Executive Arm to conduct third-party evaluations of water tariff indexation. This legislative improvement is expected to foster better regulatory oversight and transparency.
In addition to discussing coal mining, comprehensive discussions were held regarding the application of Thar coal in industrial sectors, particularly in the production of fertiliser and cement. The Board acknowledged ongoing research by firms like FFC, which are exploring the conversion of coal to fertiliser and cement solutions. Updates were provided on the conversion of the Jamshoro coal-fired power plant to operate on Thar coal.
The meeting also highlighted the progress of key infrastructure projects, including the Thar Railway Link Project, which is currently 35 per cent complete and is projected to enhance coal logistics and regional connectivity by its target completion date in January 2026.
Chief Minister Syed Murad Ali Shah, addressing the board said, “Thar coal has emerged as a cornerstone of our energy security, and today’s decisions represent a significant milestone in our journey towards energy self-sufficiency.” He emphasised the government’s commitment to providing affordable power through the use of indigenous resources, thereby reducing reliance on imported fuels.
Energy Minister Nasir Shah expressed confidence in the extension of the IRR incentive, stating, “This will sustain investor confidence and maintain the momentum of Thar coal projects, facilitating further expansion of mining operations and reducing per-ton coal costs.”
Managing Director of TCEB, Mr. Tariq Shah, said that Thar coalfield, boasting an estimated 175 billion tonnes of lignite coal, is among the largest coal deposits globally.
The Sindh Government remains steadfast in its commitment to the transformative development of the Thar coal project, aiming to enhance energy self-reliance, promote socioeconomic growth, and secure a sustainable energy future for Pakistan.