Thar Coal potential held back by transmission issues: CM

KARACHI:

Chief Minister Murad Ali Shah said that Thar Coal is the most affordable source of electricity generation in the country, however, due to transmission constraints, there are instances when the delivery of this inexpensive power is hindered, preventing the full potential of Thar Coal from being realised.

"Since 2019, over 27,000 GWh of electricity has been generated from Thar Coal Block-II at a significantly lower fuel price of Rs4.8 per kWh, compared to Rs19.5 per kWh for imported coal, which has resulted in a foreign exchange saving of approximately $1.3 billion.

Presiding over a 28th Thar Coal Energy Board meeting at CM House, the CM said, "Thar Coal represents the most economical source of electricity generation within the country, and it is also locally sourced. Despite its cost-effectiveness, the evacuation of power from Thar faces challenges due to transmission limitations."

He said, "Thar Coal represents the most economical source of electricity generation within the country, and it is also locally sourced. Despite its cost-effectiveness, the evacuation of power from Thar faces challenges due to transmission limitations."

He added that both federal and provincial governments are working in collaboration to improve the electricity evacuation infrastructure from Thar to mitigate overall electricity costs so that the nation can truly benefit from the local source.

Federal Secretary (Power Division) Fakhre Alam, replying to a question from the chief minister, said that the prime minister has issued directives for the conversion of the Jamshoro, Sahiwal, Port Qasim and Hub power plants on Thar Coal for imported coal substitution. He further added that a study would be conducted before converting them on imported coal. At this, the CM said that once the railway line is laid, transportation of coal from Thar to upcountry would be easy and cheap.

The chief minister was informed that the contract to lay the rail track from the Thar Coalfield in Islamkot to Chorr, a distance of 105km, has been awarded to the Frontier Works Organization (FWO). Earthwork is currently in progress, and sleepers have been procured. Procurement of rails and fastening materials has also begun.

Additionally, a 9km rail track is being developed from Bin Qasim to the Lucky Power Plant and Coal Unloading Facility for M/s Lucky Electric Power Company at Port Qasim.

In Tharparkar, 242.12 acres of private land are being acquired, for which Rs60.8 million has been allocated to the Commissioner of Mirpurkhas, as stated by the Chief Secretary.

The CEO of SECMC reported to the meeting that Chinese lenders are willing to support the expansion of the Block-II mine, increasing its capacity from the current 7.6 million tonnes per annum (mtpa) to 11.2mtpa. He stated that a financial close is expected to be achieved by the first quarter of 2025.