With an aim to increase the share of indigenous resource into the energy mix, the Sindh Engro Coal Mining Company (SECMC) has signed two separate Coal Supply Agreements (CSA) with TEL and Thal Nova for the supply of 1.9 million Tons of coal per annum each.

Thal Nova is a joint venture between Thal Power (Private) Limited and Nova Powergen Limited subsidiaries of Thal Limited and Novatex Limited respectively. Thar Energy Limited (TEL) is the subsidiary of Hub Power Company Limited (Hubco), which is one of the largest IPPs in Pakistan Thar Energy Limited and Thal Nova is setting up mine-mouth power plants of 330MWs each at Thar Coal Block II, fully capable of running 100 percent on Thar coal. Both the power plants are scheduled to be commissioned by early 2020.

After commissioning of these two projects, SECMC would be mining 7.6 million tons per annum of coal from Thar Block II which will reduce the coal tariff to approx. USD 41.35 per ton, which will be equivalent to import coal on USD/MMBtu basis. Earlier in April 2016, SECMC and Engro Powergen Thar Limited (EPTL) achieved combined Financial Close to supply 3.8 million tons per annum of coal to EPTL. Currently, a project to mine 3.8 MTPA and 660MWs power plant is progressing ahead of schedule and is expected to come online in June 2019.