The Sindh Coal Development Fund is being set up to accelerate the development of Thar and Badin coalfields to generate coal-based electricity as soon as possible for overcoming the ongoing energy crisis in the country, it is reliably learnt.
The decision in this regard was taken by the Thar Coal Energy Board (TCEB) in wake of the hindrances confronting the development of the coalfields and to ensure smooth and immediate transfer of funds to the administrative departments ie Mines and Mineral Development and Coal and Energy Development, sources told Business Recorder on Friday.
Chief Minister Syed Qaim Ali Shah has also approved the summary regarding the establishment of separate fund for Thar and Badin coalfields. The Finance Department has also been issued instructions in this regard, they added.
The administrative department was facing difficulties in releasing the funds due to lengthy process, they said, adding that many important schemes had faced dearth of funds in the past, causing delay in execution of the development works at the country's largest coalfield sites.
The separate fund - Sindh Coal Development Fund - would be set up in the Fund Management House of the Finance Department very shortly, which would help in direct release of funds for the coalfields uplift without going through the lengthy process, they said.
Initially, at least Rs 1 billion laying with the Ministry of Petroleum and Natural Resources under the Thar Coal Infrastructure Development in the federal government's Public Sector Development Programme (PSDP) and Rs 2 billion allocated by the Sindh government in current fiscal year budget under the Sindh Coal Development Package would be transferred to this separate account.
The secretary of the administrative department would be authorised to directly release the funds for the uplift works at the coalfields, they said and added that the funds including those allocated by the federal government would now be kept in this new separate poll in the future as well.
Sources said that the Block VII and VIII were being extended into additional Blocks XI and XII at Thar Coalfield besides the study was underway to provide broad-gauge rail link for all coalfields of Sindh province with Badin-Hyderabad rail route. They said these extended blocks would be offered to the international companies for setting up coal-based power plants to overcome the persisting energy crises in the country.
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