Thar coal recently received a massive boost after China State Council (CSC) approved investment of $1.2 billion for coal mining and establishment of another 660MW power plant as part of the priority China-Pak Economic Corridor (CPEC) projects. The concerned documents will be signed on the 21st December in Beijing. Earlier in October, the government of People’s Republic of China agreed to increase the financing of Thar Coal. Under the terms was expansion of power generation capacity of Thar Block-II from 660 to 1,320 MW and increase in coal mining from 3.8 to 6.5 million tons per annum (MTPA).
Sinosure will collaborate with Sindh Engro Mining Company in order to increase the surface mining and power generation capacity. As per the Ministry, reaching this level of collaboration in a relatively short amount of time is a major achievement. The project regarding expansion of Thar Coal was prioritized by the government of Pakistan. Thar Coal expansion project will cost an estimated $2 billion and is expected to complete by 2018. All the regulatory requirements for the project were completed in one year due to the efforts of Ministry of Water and Power, and NEA China.
Pakistan faces a major energy shortage and the situation has remained unchanged for the most part for the longest of times. Under the China-Pak Economic Corridor several power projects, majority of which are expected to be completed by the end of 2017, are in the pipeline. If everything proceeds as per schedule, which the governments of China and Pakistan expect, Pakistan should not only be able to meet the energy demands, but may even reach a surplus. Countless projects under CPEC have been put under the priority list, most of which have to do with power generation. Pakistan, at this rate, with the help of China should be able to tackle the crisis by the first quarter of 2018.You can follow us on Facebook, Twitter, or Google+ for more updates. Otherwise fill in the subscription box above, or subscribe to our RSS Feed.