SINDH's decision to over-ride its own reservations and go ahead to exploit the much-delayed huge Thar coal reserves for power generation is a welcome news for energy-starved consumers.

Hit by severe power and economic crises, the quality of life of most of the citizens has worsened. While strategically placed, Pakistan relied on external debt without addressing the economic downslide. It is time to look within. Sindh has shown the way to rely on self and harness the natural resources for national uplift.

Coal and hydropower are cheap and reliable options available to the country. Since no consensus exist among federating units on Kalabagh dam construction, though reportedly Rs80 billion have been spent on it over years, there is little option but to go for coal-fired power to meet the power demand soaring by an estimated 12 per cent per annum.

On the eve of 63rd Independence Day celebration, the Sindh Cabinet approved the first-ever coal-power generation project of 600 to 1,000 megawatts (MW) under public-private partnership. Sindh government and private Engro-Pakistan signed Thar power generation accord on the basis of 60-40 share. Feasibility report on the project is stipulated to be completed in two years.

The project is to cost $3.3 billion, of which $1.1 billion will be spent on coal mining and $2.2 billion on power generation, officials said.

Prime Minister Syed Yusuf Raza Gilani has lamented the “waste of 62 years” in resolving rights issue between the federal and provincial governments over Thar reserves and hailed Sindh cabinet's decision to go ahead with the project “to overcome power crisis.”

To expedite the exploitation of the coal reserves, work on its infrastructure development including construction of an airport at Islamkot, laying of railway lines and linking the project with Keti Bandar is underway, officials said. Thar Coal Energy Board has been asked to monitor and speed up the execution of the cabinet decision.

According to 2007 power sources report, Pakistan has the installed electricity production capacity at 19,505 MW fossil fuel - 12,580 MW, hydro - 6,463 MW and nuclear - 462 MW. This works out at 65, 33 and two per cent of total production, respectively. Per capita electricity consumption is recorded at 430.183 kWh.

With rise in temperature in recent years, consumers faced a worst ever power shortage of around 2500-3000 MW that plunged both urban and rural areas into darkness and rendered industries and agriculture tube wells inoperative for hours.

The electricity demand peaked to 16,000MW this summer. The climb is attributed to induction of some 60 million home appliances air conditioners and microwave ovens that proliferated electricity demand by almost 2000MW. The shortage is also attributed to disappearance of over a quarter of total power generation that works out at about 100 billion kWh units through line losses, theft, and obsolete equipment.

The bigwigs in power generation companies and units remain in cozy offices round the year and wake up only when the high-ups in power hierarchy twist their arms over the never-ending daily load-shedding. Frustrated with the load shedding, industrialists and common people rely on imported generators and UPS that cost the country $ 600 million during last fiscal.

Pakistan's untapped coal reservoirs rank fifth largest in the world and are worked out equivalent to 400 billion barrels of oil, which exceeds the combined oil reserves of Saudi Arabia and Iran. At current prices, these deposits are estimated at over $25 trillion.

Only a considerable percentage of existing coal reserves can yield 20,000 megawatts of power for 40 years and extricate the country from crushing and prolonged load-shedding in short-term, according to a study.

Despite presence of such huge coal reserves, more than 70 per cent energy is derived from natural gas, a fast depleting resource, and costly imported oil. Imports of oil accounted for 28 per cent of the total imports in 2006-07. The value of oil shot up by at least 50 per cent in 2007-08 under steep world oil price.

Indeed, coal reserves exist in all four provinces but bulk of them are located in Sindh. Given adequate investment and proper technology, 100,000 MW can be harnessed for 200 years, another study reveals.

Thar coal deposits are disadvantaged with high moisture content (40 - 50 per cent) which makes it essential to deploy technology designed to produce dry coal and sulphur washing plants at mine sites to make extraction cost economically viable.

Coal is the world's fastest growing fuel, particularly in the developing countries. It provides 26 per cent of primary energy and 40 per cent of world electricity supply.

IEA has predicted that the coming century will be fuelled by coal as worldwide crude oil reserves with increased projected demand will last 41 years, natural gas 67 years and coal 192 years China, India and the US obtain 80, 60 and 25 per cent of electricity from coal respectively. .

Coal fired plants emit carbon that cause pollution, resulting in climate change. This has evoked concern the world over, prompting International Kyoto protocol to contain emissions and pollution abatement. The pollution abatement costs in developed countries have reached levels where projects have started yielding negative returns.

It is said a typical power coal plant generates three million tons of CO2 or 17 tons of carbon per megawatt and draws about 2.3 billion gallons of water per annum. Mercury mixed in such water not only renders it unsafe for human consumption but also for irrigation purpose. Hence scientists suggest special care should be taken and technology must be employed ahead of the production at Thar coal project. Sindh is already deficient in water supply for agriculture.

Thar Coal exploitation can spearhead major economic development and employment generation activities in the area, officials said adding with over 200,000 jobs flowing from it over the years could rank it right at the top of all investments—domestic or foreign.

This will bring a radical change in the lives of people in Thar, hitherto deprived of even access to sufficient food, safe drinking water, sewerage, healthcare, transport and education, officials exuded optimism.

Also, the power plant with electricity at affordable price can salvage the cement industry which incurs whopping inputs cost. It is estimated the industry can save to the tune of Rs495 million a year because the coal-fired plant would produce 3,000 tons of cement per day. Furnace oil based power cost averages Rs924 as against Rs374 of coal-fired power.

The contemplated shift will save the country $170 million when the cement sector runs to its full capacity or at least $100 million a year on the utilisation of 63 per cent production capacity as now, the sector assessed.

This cut in production cost will lower prices and spurt demand. It will boost cement industry production and serve as a strong catalyst for the country's economic revival, in not too distant future, they hope.