Sindh government has strongly protested against the Centre's decision of shelving Rs 490.48 million Thar coal gasification project and has decided to take up the matter with the President and the Prime Minister, Business Recorder has learnt.
According to sources, the federal government was supposed to undertake Thar coal gasification project at a cost of Rs 490.48 million to purify the mined coal gas, establish new processing facilities and finally generate electricity. However, the authorities at the Centre recently shelved the project, terming it technically unfeasible, they said.
The Centre and the Sindh government were at loggerheads over the implementation of this very important scheme, sources said, adding that the federal authorities, after strong resistance, had allowed Sindh government to go ahead with the scheme.
Although, the federal government would provide funds for the scheme, Sindh Coal and Energy Board had been made the apex body for Thar Coal Gasification Project. It would take all policy decisions, such as allocation of Thar blocks, ascertainment of tariff with Wapda for the sale of electricity, or any sharing of revenues with federal government, etc.
In July 2008, the Board was constituted, with Sindh chief minister as chairman, federal minister for water and power as vice chairman, and federal minister for law and justice, deputy chairman of planning commission, two provincial ministers nominated by CM, secretary, ministry of water and power, provincial chief secretary, and one eminent person nominated by the government of Sindh, as members. The Board's managing director would be its member/secretary.
The design, purchase, fabrication, installation and commissioning work was to be started simultaneously after release of funds. However, the product was supposed to be consumed within the country for the power plants, sources added.
They said that the Sindh government had forwarded a letter to the Ministry of Water and Power informing it about the reservations against the decision. The project should continue as it was in the larger interest of the country, the letter said.
The chief minister would also approach the President and the Prime Minister shortly against the decision of shelving Thar Coal Gasification Project and request them to intervene into the matter and withdraw the decision so that Thar coal could be developed on fast-track basis, sources added.
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