Transportation of Thar coal to power plants: Senate panel recommends Rs40bn for railway link

ISLAMABAD: The Senate Standing Committee on Planning, Development and Special Initiatives on Tuesday recommended Rs40 billion for the construction of a railway link from Islamkot to Chor to provide a railway link to carry cheap indigenous Thar coal to the power plants running on coal across country.

The parliamentary panel met with Senator Atta ur Rehman in the chair to finalize recommendations of members on the Finance (Amendment) Bill, 2023 relating to the Public Sector Development Program (PSDP).

The meeting was attended by senators Taj Haider, Tahir Bizenjo, and Kauda Babar.

The committee took serious notice of the absence of senior-most officers from the Ministry of Planning, Development and Special Initiatives and decided to take the matter up in the House.

Members deliberated over the recommendations made by Senator Haider that included the construction of a railway link from Islamkot to Chor to provide a railway link to carry cheap indigenous Thar coal to the power plants running on coal in the entire country. Haider informed the committee that coal is being imported at $400 per ton, however, the locally-produced coal would cause $35 per ton.

He further said that financing of the project with the federal government providing 30 percent equity is very much feasible from the Asian Infrastructure Development Bank. This would reduce the financing burden on the federal government to a mere Rs12 billion.

An allocation of Rs40 billion was recommended. Another recommendation made by the senator was to repair the Reverse Osmosis Plant lying dormant for more than eight years to supply water to Gwadar.

A federal government grant of Rs100 million would be sufficient for the project. A grant of Rs20 million was also recommended for two 20000 GPD RO Plants at Sonmiani and Ormara. It was also recommended as per the Special Committee of the Senate on CPEC to construct a natural gas pipeline connecting Tajikistan Gas Pipeline with Gilgit City crucial to preserve forests and glaciers.

An allocation of Rs100 million was recommended for the feasibility study of the project. Development of six solar parks was also recommended in Turbat, Gwadar, Pasni, Gahkuch, Gilgit, and Skardu for which an allocation of USD 30 million was suggested. Relaxation of custom duty on sports goods was recommended as well.

Senator Babar said that a business plan worth Rs25 billion was approved for the Gwadar port in 2004, however, less than 50 percent was released during the last around 19 years.

Copyright Business Recorder, 2023