Thar Coal Development: TCEB Approves Strategic Tariff and Policy Measures to Strengthen Indigenous Energy Sector

Thar Coal Development

KARACHI (July 30) – Sindh Chief Minister Syed Murad Ali Shah chaired the 29th meeting of the Thar Coal and Energy Board (TCEB) at CM House, where several pivotal decisions were taken to accelerate coal-based energy development in the Thar region.

Highlighting the impact of Thar’s coal power projects, the CM revealed that since 2019, over 2,600 MW of affordable electricity has been added to the national grid at just Rs 4.8 per unit—compared to Rs 19.5 per unit from imported coal—saving Pakistan nearly \$1.3 billion in foreign exchange.

During the meeting, TCEB approved indexed coal tariff adjustments for Sindh Engro Coal Mining Company (SECMC) and sanctioned the Commercial Operations Date (COD) tariff for Sino Sindh Resources (SSRL) operating a 7.8 MTPA mine at Block-I. These approvals are expected to ensure pricing stability and facilitate full-scale commercial mining.

To boost investor confidence, TCEB extended the 18% Internal Rate of Return (IRR) incentive on equity for Thar coal projects until December 31, 2026. Additionally, proposed amendments to the TCEB Act 2011 will enable third-party evaluations of water tariff indexation, strengthening transparency and regulatory oversight.

The Board also reviewed the progress of the Chhor-Islamkot Railway Link—now 35% complete—set to improve coal logistics by January 2026. Moreover, discussions focused on utilizing Thar coal in cement and fertilizer production, including updates on converting the Jamshoro power plant to Thar coal.

CM Murad Ali Shah emphasized Thar coal’s role in achieving energy self-sufficiency and reducing reliance on imported fuels. Energy Minister Nasir Shah termed the IRR extension a key move to sustain project momentum. TCEB MD Tariq Shah noted that Thar’s 175 billion tonnes of lignite make it one of the largest coal reserves globally.

The meeting was attended by senior provincial and federal officials, including Ministers Nasir Shah, Sardar Shah, Jam Khan Shoro, MNA Shazia Marri, and Federal Law Minister Azam Nazeer Tarar (via video link).

Related posts