Karachi: Sindh Chief Minister (CM) Syed Murad Ali Shah on Friday (October 22) has approved the Phase-III Coal Mine Expansion project in Thar to excavate 12.2 million tonnes of coal, at an estimated cost of PKR 15.8 billion, according to news sources.
As per the details, this project will help excavate coal for the annual generation of 1,980 megawatts of electricity and will help save PKR 420 million foreign exchange spent on coal imports. The third phase expansion project will bring down the coal price to USD 27 per tonne, which will make it the cheapest baseload fuel in the country.
The CM stated the Central Power Purchasing Agency (CCPA) basket tariff will decrease by PKR 0.49 per kilowatt-hours (kWh) to PKR 15.05 per kWh. As a result, the consumers will be able to save PKR 60 billion while the Sindh government will earn PKR 10 billion royalty annually. During the meeting, CM Murad mentioned that the project will be referred to the provincial cabinet for final approval.
It is pertinent to mention that the Phase-I of Sindh Engro Coal Mining Company (SECMC) had been operational for two years, which has an annual production of 3.8 million tonnes of coal for the generation of 660 megawatts (MW). In the second phase, it was reported that 7.6 million tonnes of coal per annum were excavated for the generation of 1,320 MW.
Moreover, the chief minister will talk to the federal government to establish a rail link from Thar to the upcountry, which will facilitate the transportation of coal for power plants across the country.
Iqra holds BS in International Relations and is passionate about writing engaging content on trending real estate topics. When not working, she is either spending time with family, shopping, or discussing shows & movies.
