Coal and energy projects get Rs3.71b

Development of power sector is a priority, says Sindh finance minister.

KARACHI:

Sindh government has allocated Rs3.71billion for coal and energy projects in provincial budget for 2011-12 under the Annual Development Program.

Sindh Finance Minister Murad Ali Shah, while presenting the Sindh budget 2011-12 on Friday, said the development of power sector is a priority for the provincial government, for which continuous efforts are being made to attract local and foreign investment.

Out of the total development budget for coal and energy, Rs1.21 billion is allocated for coal energy, Rs1.1 billion for coal gasification, and Rs1.15 billion would be allocated to electrical power projects.

“Since the energy demand of province is ever growing the provincial government want to keep focusing on the deployment of new energy project with special attention on Thar coal,” Shah said.

He said the provincial government had faced problems in attracting investments to Thar Coal due to earlier experiences of the Chinese with the federal government.

Recently, however, in a competitive bidding in which two Chinese and one Australian firm took part, the government had allowed the Chinese companies to undertake coal exploration, power generation and establish petro chemical complexes at two blocks in Thar.

He also said that the bankable feasibility study for the JV project between the Sindh government and Engro Group has been instrumental in attracting Chinese businessmen, under the Pak-China Joint Energy Working Group.

In order to develop the infrastructure in Thar, he said a scheme for bringing water to Thar coal was approved by the executive committee of the National Economic Council and its feasibility study for effluent disposal and laying a broad-guage railway line are expected to be completed by June 2011.

Sindh has welcome this in the 18th amendment in which federal government will encourage direct involvement of provinces in sectors like mining, and oil and gas.

The Sindh government would then be engaged in forming a joint mechanism with the federal government to ensure implementation of this amendment.



Published in The Express Tribune, June 11th, 2011.