KARACHI: Sindh Chief Minister Syed Murad Ali Shah on Tuesday chaired the 29th meeting of the Thar Coal & Energy Board (TCEB), where key initiatives were approved to boost the region’s coal mining and power generation capacity.

Speaking at the meeting held at CM House, Mr Shah said Thar’s coal-based projects have added over 2,600 megawatts (MW) to the national grid since 2019, supplying affordable electricity to millions. He highlighted that electricity generated from Thar coal costs around Rs4.8 per kilowatt-hour (kWh), compared to Rs19.5 per kWh from imported coal—saving approximately $1.3bn in foreign exchange.

The meeting was attended by Energy Minister Nasir Hussain Shah, Education Minister Syed Sardar Shah, Irrigation Minister Jam Khan Shoro, MNA Shazia Atta Marri, Chief Secretary Asif Hyder Shah, secretaries, and other board members. Federal Law Minister Azam Nazeer Tarar and federal representatives joined via video link.

As chairman of the TCEB, the chief minister oversaw deliberations on strengthening the country’s coal-based energy security. The board unanimously ratified several strategic decisions to support long-term energy sustainability and investment.

The board approved the indexed and adjusted coal tariffs submitted by Sindh Engro Coal Mining Company (SECMC) for October-December 2024 and January-March 2025, aligning coal pricing with current cost indices to ensure stable fuel supply for power plants.

A major milestone was achieved with the approval of the Commercial Operations Date (COD) tariff for Sino Sindh Resources (Pvt) Ltd (SSRL), operating a 7.8 million tonnes per annum coal mine at Thar Block-I. This move paves the way for full-scale commercial mining, critical to expanding domestic energy production.

To attract and retain investment, the board extended the 18pc Internal Rate of Return (IRR) on equity for Thar coal mining projects until Dec 31, 2026. The extension is designed to provide financial certainty for existing and potential investors amid volatile global markets.

Further, the board approved amendments to the Thar Coal & Energy Board Act 2011, empowering its Executive Arm to conduct third-party evaluations of water tariff indexation—strengthening regulatory oversight and transparency.

Discussions also centred on the industrial use of Thar coal, particularly for fertiliser and cement production. The board reviewed research by companies such as Fauji Fertiliser Company (FFC), which is exploring coal-to-fertiliser and cement conversion technologies.

Updates were also presented on the Jamshoro power plant’s conversion to Thar coal and the Thar Railway Link Project, which is 35pc complete and expected to significantly improve coal logistics and regional connectivity by its target date in January 2026.

“Thar coal has emerged as a cornerstone of our energy security,” Mr Shah said. “Today’s decisions mark a major step towards affordable, indigenous power and reduced reliance on imports.”

Energy Minister Nasir Shah welcomed the IRR extension, noting it would sustain investor confidence and help reduce the per-ton cost of coal by enabling mine expansion.

TCEB Managing Director Tariq Shah reaffirmed Thar’s importance, stating the coalfield holds an estimated 175bn tonnes of lignite — one of the world’s largest reserves. The Sindh government reiterated its commitment to the transformative development of Thar, aiming to ensure energy self-sufficiency, socioeconomic growth, and a secure energy future for Pakistan.

Published in Dawn, July 31st, 2025