In a significant development, the Thar Coal & Energy Board (TCEB) has given its unanimous approval to the Commercial Operations Date (COD) Stage tariff for Thar Coal Block-II mine. The board, chaired by Sindh Chief Minister Syed Murad Ali Shah and attended by Federal Energy Minister Sardar Awais Leghari, also finalized financing terms for the project.
During the meeting, the board reviewed the COD Stage tariff for the Thar coal Block-II mine with a capacity of 7.6 Mtpa (Phase-II). Following a detailed presentation by TCEB’s Managing Director Tariq Ali Shah, the board made key decisions.
The approved COD Stage tariff for Thar coal Block-II mine is set at $36.70 per tonne, significantly lower than the initial tariff sought at USD 45.80 per tonne. Additionally, the board approved revised financing terms for the Block-II mine, increasing the lending spread up to 1.85% over the benchmark interest rate, up from the previous limit of 1.5%.
The board commended the efforts of the Sindh government in advancing the Thar Coalfield objectives through Block-I and Block-II. It emphasized the need to accelerate Phase-III of Block-II under the supervision of Sindh Engro Coal Mining Company (SECMC) to achieve the broader goal of reducing energy tariffs nationwide.
