The Thar Coal & Energy Board (TCEB) has greenlit the Commercial Operations Date (COD) Stage tariff for the Thar Coal Block-II mine.
In a landmark decision, the Thar Coal & Energy Board (TCEB) has greenlit the Commercial Operations Date (COD) Stage tariff for the Thar Coal Block-II mine.
Additionally, the financing terms for the same project were finalized during the review Contract Stage tariff. The approval came during a pivotal meeting chaired by the Sindh Chief Minister, who also serves as the Chairman of the board.
The focus of the meeting was on evaluating the Commercial Operations Date (COD) Stage tariff of Thar coal Block-II mine, boasting a capacity of 7.6 million tonnes per annum (Mtpa) in its Phase-II. Deliberations also extended to the Limited Scope Petition regarding Financing Terms of Phase-III Mine, operated by Sindh Engro Coal Mining Company (SECMC).
Following a comprehensive presentation by Tariq Ali Shah, Managing Director of TCEB, the board arrived at crucial decisions. Firstly, the board unanimously approved the Commercial Operations Date (COD) Stage tariff for Thar coal Block-II mine, Phase-II, with a capacity of 7.6 Mtpa. The tariff was finalized at $36.70 per tonne, a significant deviation from the initially proposed $45.80 per tonne.
Furthermore, the board sanctioned revised financing terms for the review Contract Stage tariff of Thar coal Block-II mine, Phase-III, which boasts an enhanced capacity of 11.2 Mtpa. The approved terms include an increase in the lending spread, now set at up to 1.85 per cent over the benchmark interest rate, as compared to the previous limit of 1.5 per cent.
Acknowledging the efforts of the Sindh government, the board commended the strides taken in advancing the objectives of Thar Coalfield, particularly through Block-I and Block-II projects. Emphasizing the need for expediting Phase-III of Block-II under SECMC’s jurisdiction, the board underscored its significance in realizing the broader goals of Thar Coalfield. A key objective remains the reduction of energy tariff prices across the nation.
The approval of tariffs and financing terms marks a significant milestone in the development of Thar coal projects. With these decisions in place, there is renewed optimism regarding the future of energy production and cost management in the region.
The Thar Coal & Energy Board’s proactive approach underscores a commitment to sustainable energy solutions and economic development. As the projects move forward, all eyes will be on the implementation phase, with expectations of tangible benefits for both the region and the nation as a whole.