Thar coal development to get Rs 500-mn funds

Islamabad: Current power crisis has forced the government to switch to coal based power generation, and Rs 500 million is allocated in the Public Sector Development Programme 2008-09 for Thar Coal Infrastructure Development.

Government would develop infrastructure, including road network to access the Thar coal reserves. This is the new project that government would launch during the coming financial year and the decision has been taken to generate electricity from Thar coal reserves, which is not only cheap but will also help overcoming power shortfall.

This is a huge allocation in the Petroleum and Natural Resources Division, as the government allocated Rs 850 million for 19 development projects. Out of total allocation, Rs 500 million has been allocated for this project.

The total cost of the project has been estimated at Rs 1 billion and government would generate money from its own resources. Government has also allocated Rs 22.696 million for the ongoing project of National Coal Policy. The total estimated cost of the project is Rs 23 million. Government has also allocated Rs 35 million for the ongoing project of Feasibility Study Gasification of Thar Coal. The total cost of the project has been estimated at Rs 126.649 million.

Government has also decided to explore the coal reserves in Balochistan province and has allocated Rs 10 million for exploration and evaluation of coal fields of chamalang dhaka, bahlol and parts of ghazi coal basin in Balochistan. The total cost of the project has been estimated at Rs 30 million. Government is also set to start the exploration of coal reserves in Azad Kashmir and has allocated Rs 4.022 million for the exploration for coal in kotli. The total cost of the project has been estimated at Rs 20 million.

Other ongoing projects include: feasiblity study for development and exploration of Chichali Iron Ore and comissioning of steel mill at Kalabagh, Rs 5 million, geo-hydrological exploration for development of underground water in Hamun-e-Mushkil, Chaghi District Balochistan Rs 15 million, Establishment of Project Management Unit for PHRD Rs 5 million, Strengthening and Capacity Building of Mineral Wing Rs 10 million, Capacity Building for Hydrocarbon Research and Development Islamabad Rs 26.320 million.