KARACHI (November 5, 2026): Sindh Chief Minister Syed Murad Ali Shah has approved a revised coal pricing framework for non-independent power producers (non-IPPs) and ratified Rs9.663 billion in verified duties, taxes and Workers’ Profit Participation Fund (WPPF) claims of Sindh Engro Coal Mining Company (SECMC).
Thank you for reading this post, don't forget to subscribe!The decisions were taken at the 31st meeting of the Thar Coal and Energy Board (TCEB), which approved all agenda items, including tariff adjustments and key project-related matters. The Chief Minister directed relevant departments to ensure timely completion of ongoing projects, strengthen federal-provincial coordination and accelerate investment in Thar coal development.
The meeting was attended by provincial ministers, senior government officials and representatives of federal ministries, including Federal Ministers for Planning Ahsan Iqbal, Energy Sardar Awais Ahmad Khan Laghari and Finance and Revenue, who participated through video link.
Thar Coal Projects Make Progress
The Board reviewed progress on the Thar Coal Drying and Briquetting Project in Block-I, designed to reduce coal moisture content from 45 per cent to 18 per cent. The facility has an input capacity of 30 tonnes per hour and an output capacity of 22 tonnes per hour. It is expected to improve coal quality, enhance transportation efficiency and reduce freight costs.
The Chief Minister directed the Energy Department and TCEB to maintain effective oversight of the facility, while Federal Power Minister Awais Ahmad Khan Laghari congratulated the provincial government on the project’s launch.
The meeting was also informed that Sindh Engro Coal Mining Company (SECMC) had achieved commercial operations of Phase-III expansion in Block-II on October 1, 2026, increasing annual mining capacity from 7.6 million tonnes to 11.2 million tonnes. The expansion is expected to improve economies of scale and reduce coal production costs.
The Board further reviewed coal supply arrangements with Lucky Electric Power Company Limited (LEPCL). Following the signing of the Coal Supply Agreement, full coal supply has commenced for its 660MW power plant.
Thar Rail Connectivity Project
The Board reviewed progress on the Rs90.3 billion Thar Rail Connectivity Project, which includes a 105-kilometre railway line connecting Thar coal mines with New Chhor. The project has achieved 68 per cent physical progress and is expected to be completed shortly.
Meanwhile, the nine-kilometre double railway line from Bin Qasim to Port Qasim is under the bidding process, while the coal loading station in Block-II has achieved 55 per cent progress. The Chief Minister directed the Energy Department to complete the coal loading station by March 2027.
The rail project is intended to facilitate transportation of Thar coal to power plants and other consumers. Its proposed operational arrangement includes five trains daily, each comprising 40 wagons, with a total requirement of 400 wagons to maintain the transportation cycle.
Transmission Infrastructure and Foreign Investment
The meeting also reviewed the development of 132-kilovolt transmission infrastructure through HESCO for Thar coal mining operations. The Naukot-Mithi transmission line has achieved 75 per cent physical progress, while the Mithi-Islamkot line has reached 52 per cent. The associated grid and transmission infrastructure is targeted for completion by April 2028.
The Board also reviewed nine Memoranda of Understanding signed during the Sindh Investment Conference in Shanghai, comprising four Government-to-Business (G2B) and five Business-to-Business (B2B) agreements focused on Thar coal utilisation.
The proposed areas of cooperation include coal-to-chemicals, coal-to-liquid, coal gasification, methanol production, value-added coal products, coal drying and briquetting, carbon capture and utilisation, mining technology, mine planning and operational services. The potential use of mine dewatering water for agriculture was also discussed.
Revised Coal Pricing Framework Approved
In a significant policy decision, the Board approved a revised Chapter 3, titled “Thar Coal Price for Non-IPPs”, replacing the existing chapter of the Thar Coal Pricing Framework, 2015, in accordance with Rule 11 of the Thar Coal Tariff Determination Rules, 2014.
The revised framework introduces a transparent mechanism for determining coal prices for non-IPPs, with separate provisions for short-term and long-term coal supply arrangements. It also establishes mechanisms for sharing relevant benefits with power consumers, allocating capacity charges and preventing double recovery of costs.
Under the revised framework, costs associated with non-IPP coal sales will not be transferred to the tariffs of existing independent power producers. Benefits attributable to capacity charges already paid by power consumers will also be credited accordingly.
The new mechanism aims to encourage wider utilisation of indigenous Thar coal, attract additional buyers and facilitate long-term investment while safeguarding the interests of existing electricity consumers.
Tariff Adjustments and Rs9.66bn Claims Ratified
The Board ratified the extension of the tenure of Member Mining Dr Fahad Irfan Siddiqui and Member Finance/Power Ammar Habib Khan of the Thar Coal Tariff Determination Committee until August 17, 2027, ensuring continuity in tariff-related decisions.
It also ratified indexed tariff orders for SECMC’s Block-II operations and SECMC/SSRL-related Block-I operations for the first and second quarters of 2026.
Regarding SECMC’s duties, taxes and WPPF claims for July 2019 to December 2025, the Board reviewed total claims of approximately Rs9.807 billion. Of this amount, Rs9.663 billion, representing 98.5 per cent of the total claim, was verified and approved as admissible.
The determination also provides for adjustments against the relevant Multi-Year Tariff (MYT)-based claw-back and introduces a quarterly filing mechanism for future claims. Companies will be required to submit supporting documentary evidence, payment records and auditors’ certifications.
CM Stresses Transparency and Consumer Protection
Chief Minister Murad Ali Shah called for rigorous financial scrutiny, timely tariff determinations and regular verification of duties, taxes and other admissible claims to ensure transparency, accountability and financial discipline.
He emphasised that the expansion of Thar coal production must be supported by efficient transportation, reliable electricity infrastructure and the development of additional markets for indigenous coal.
The Chief Minister further stressed that the revised pricing framework must be implemented transparently, with proper accounting of capacity charges and safeguards to ensure that existing electricity consumers do not face any additional financial burden.
He described Thar coal as not merely a provincial resource but a strategic national asset, reaffirming the Sindh government’s commitment to working with the federal government, investors and power-sector stakeholders to strengthen Pakistan’s energy security and economic prosperity.
