New investment initiatives reviewed: Sindh CM-led Thar Coal Board approves tariff decisions

KARACHI: Marking significant progress in Pakistan’s indigenous energy sector, Sindh Chief Minister Syed Murad Ali Shah presided over the 30th meeting of the Thar Coal & Energy Board (TCEB), where major advances in mining expansion, rail and grid connectivity, tariff rationalisation and new investment initiatives were reviewed to accelerate development of the Thar Coalfield as a national energy and industrial hub. He reaffirmed the provincial government’s commitment to fast-tracking indigenous energy development, expanding coal-based industrialisation and reducing the country’s reliance on imported fuels. The meeting, held at CM House, was attended by federal board members – Planning Minister Ahsan Iqbal, Power Minister Awais Leghari, Finance Minister Muhammad Aurangzeb and Federal Law Minister Azam Nazeer Tarar (via video link) – as well as provincial board members, including Education Minister Syed Sardar Shah, Irrigation Minister Jam Khan Shoro, PSCM Agha Wasif, DG TCEB Tariq Shah and others. The Board reviewed progress on ongoing Thar coal projects, approved key tariff-related matters and deliberated fresh investment proposals aimed at expanding mining, power generation and downstream industrial activity in the Thar Coalfield. Chairing the meeting, the chief minister said Thar coal had emerged as a strategic pillar for Pakistan’s energy security and economic stability. “Thar is not just a coal project, it is a national economic opportunity, ” Murad Ali Shah said. “We have to accelerate mine expansion, strengthen infrastructure connectivity, and move towards value-added industrial use of Thar coal. ” Progress on projects Reviewing projects, the meeting was informed that SECMC Phase-III is progressing as planned and is expected to achieve commercial operations in September 2026. The Thar Railway Connectivity Project, including the 105-km rail link from the mines to New Chhor and associated coal logistics infrastructure, is moving ahead, with major procurement milestones achieved. The Railway Coal Loading Station at Block-II continues to make headway under its multi-component expansion programme linked with the Thar Coal project. Component-II comprises the construction of a 105-kilometre new single-line railway track from the Thar Coal Mines to the New Chhor Station, while Component-III entails a 9-kilometre new double-line track from Bin Qasim to Port Qasim. Component IV includes the development of a coal unloading pit at Port Qasim/LPP Station. According to the rolling stock plan, five trains per day will operate, each consisting of 40 wagons, requiring 200 wagons in daily operation. With a two-day turnaround time, a total of 400 wagons will be needed. Overall physical progress shows that track-related works, including cutting and filling, stand at 58. 82 per cent. Cutting of earth is 61. 99 per cent complete, earthwork for embankment construction has reached 92. 45 per cent, procurement of 45-kg rails stands at 67. 80 per cent, and procurement of elastic rail fastenings (W-14) and PSC mono-block sleepers has been completed at 100 per cent. Civil works, such as station buildings and culverts, however, lag at 43. 38 per cent, highlighting the remaining scope of work on the project. Work on 132 kV HESCO grid connectivity for Thar coal Blocks I and II is progressing, with completion targeted for 2028 and a significant reduction in mining power costs expected upon commissioning. The Federal Minister’s NGC Committee has endorsed the 132 kV HESCO connection as the option with the lowest investment and shortest lead time, and applications have already been submitted with related studies underway. The project is projected to cut power costs by around 60 per cent, from 33 to 13 US cents per kWh, which in turn is expected to lower the coal tariff by $0. 7 per ton and generate annual savings of approximately $9 million. Copyright Business Recorder, 2026

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