A new 105 kilometres rail track is being constructed from Thar coal mines to the national railway network with foreign investment in order to ensure availability of indigenous lignite (coal) fuel throughout the country.
A memorandum of understanding was inked by Railway Constructions Pakistan Limited (RAILCOP), M/s Al-Furqan Holdings Private Ltd and BIL Pakistan Pvt Ltd for the €170 million project, which will connect Thar Coal Block II with New Chorr Station on the Hyderabad-Mirpurkhas rail link.
“The project will be executed under 100% foreign direct investment (FDI) by Al-Furqan Group, UAE,” RAILCOP CEO Syed Najam Saeed said while addressing a ceremony on Tuesday.
He said that the project will give maximum coverage to all Thar Coal Mine Blocks and far-flung population centres in Tharparkar district while avoiding any existing infrastructural relocations.
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The RAILCOP CEO reaffirmed the mission of Federal Minister for Railways Azam Khan Swati in transforming Pakistan Railways into a profit-generating entity with such PPP (public-private partnership) projects.
Saeed said that the vision of Prime Minister Imran Khan is to attract FDI with attractive incentives and policies to the investors in a competitive business environment.
He said this new rail link would be helpful for the coal-driven energy projects executed under the China-Pakistan Economic Corridor (CPEC).
“The project will create thousands of jobs, boost investment in other associated projects, enhance export of coal and have a positive impact on macroeconomic indicators.”
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