Thar coal royalty amounting to Rs.2.5 bn goes to Tharis

on 21/12/2018

Thar-Sindh govt moves on to ex-chief SECM’s demands after 2 weeks of his resignation.

Little less than two weeks after Sindh Engro Coal Mining Company (SECMC) Chief Shamsuddin A. Shaikh quit his office, the Sindh government moved to resolve two major issues which had become the cause of his {Mr. Shaikh’s} resignation. The government decision may further deepen the speculations that Mr. Shaikh did not step down for what he branded “indifference and callous approach” of Thari lawmakers as well as the Sindh government towards the local people. Instead, he quit for some other reasons, may be linked to Engro only. Mr. Shaikh left the company which he worked for eight years just a month before the scheduled inauguration of the power plant. He succeeded in opening the very first pit in Thar for extracting coal in Block – II near Islamkot and also installing the power plant ahead of their completion dates.

He had told local journalists that he was ‘shattered to see the total indifference of the rulers towards their commitments made with the local people living near the Thar coalfield to provide them the basic amenities of life.” In mid-December, Syed Murad Ali Shah, the Chief Minister of Sindh approved a grant of Rs.950 million for 1200 affected families of Thar Coal Field’s block – II where the company is mining coal through the open-pit process for the very first coal-fired power plant. The grant would go to Thar Foundation which is responsible for undertaking Corporate Social Responsibility (CSR) program of SECMC who would distribute a monthly release of Rs.10,000/- to each affected family. Sindh government had committed to building new houses for the affected families as a substitute and the chief minister said the construction was underway.

“Sixty houses have been completed so far, Sindh Energy Minister Imtiaz Shaikh has informed the government. The houses have been designed in the backdrop of local Thari setting where the occupants would be able to assimilate with their Thari lifestyle. Also, the government has decided to provide two jobs for each affected family.

The royalty of Thar Coal is estimated to Rs.2.5 billion which as the government communication says will be spent for the betterment of Thari people. The government has decided in principle that the SECMC’s CSR model would also be emulated in other blocks of Thar Coal Field in the future. The total coal area is spread over 9 thousand square meters which are divided into 12 blocks. SECMC is working on Blok – II of the field. Thar Coal Water Works was another issue between former SECMC chief Mr. Shaikh and the government which reportedly created bad blood between the partners. Two powerful contractors said to be close to the ruling party’s top leadership are supposed to complete water schemes designed for the power plant. The water is to be transported from the Left Bank Outfall Drain (LBOD). But the scheme stands far from completion.

Thus, the power plant is left with an RO plant only whose water quality is still questionable. But still, the company officials are sure that the first coal-fired power plants are on schedule and the power would be synced to the national grid in mid-February. Interestingly enough, a moot chaired by Syed Murad Shah in Karachi tasked Energy Minister Imitiaz Shaikh to talk to the management of the sugar mills which release their effluents in LBOD. The mills are required to install treatments plants so that the LBOD water is used for the power projects.

This is a big issue which would hinder future projects on coal in Thar. The cost of treatment plants is high and it is less likely that the sugar mills would pay heed to the government as most of the mills are owned by the powerful people in the ruling circles of Sindh.n