Pakistan Starts Thar Coal Project

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The “Thar Coal Project” is a famous term in media as it is mentioned several times that the government is ignoring it despite its massive potential. Though, coal is not environmentally unfriendly while coal reserves in Thar are mostly of low level but it is possible to convert it in gas which makes it less harmful.

The ‘Thar Coal Project’ is based in the Thar desert of Sindh. The coal reserves in this area are expected to be 175 billion tones. Currently, Pakistan’s total coal reserves are 186 billion tones which means that 94% of these reserves are located in Thar.

This is such a huge coal amount that it is even more than oil reserves in Saudi Arabia and Iran. After conversion, it becomes 2,000 trillion cubic feet gas which is 68 times higher than the current gas reserves of Pakistan.

Now the construction phase of the Thar coal mining and power project has stated and it will be completed in June 2019. The coal mining will start from last quarter of 2018 while the power plant will generate 660 MW of electricity.

Thar block-2 has less than 1% (1.57 billion tones) of total coal in the area while it has been given to Sindh Engro Coal Mining Company (SECMC). For the next 50 years, it can generate 5000 MW of energy.

In April 2016, the financials of the project after which it was estimated to be completed in 42 months. According to CEO of SECMC, 9.5% progress has been achieved instead of the estimated 8% due to which they are hopeful to complete this project in 38 months.

October 2019 was the initial target to finish this project but now it is expected to be finish in June 2019. By December 2020, Pakistan will be making 2700 MW of electricity through these coal reserves. The initial tariff for power generation will be 10 cents per unit but the increased coal production and falling prices will reduce it to 6 cents per unit in 8 years. China is providing 54.5% of the total project cost due to its being a part of CPEC.

From the coal produced in Thar, 2.5% royalty will be given to Sindh govt. which will start from $7 to 8 million per year and will increase to $3 to 3.5 billion later. CEO SECMC told that they have requested the Sindh government to share this royalty for betterment of the area by providing education, health and other basic facilities to the people.

He told that they are hiring unskilled workers from Thar and will train them in well reputed institutes. Currently, only skilled workers are busy on the project.

Thar Coal Project

Thar Coal Project

 

Thar Coal Project

Thar Coal Project

 

Thar Coal Project

Thar Coal Project

 

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