Govt to Save $30 Million By Shifting Thar Coal Mining Operations to Grid Power

Muhammad Bilal
Publish Date: April 1, 2026
Published In: ProPakistani

The Power Division has announced a major reform in Thar coal mining operations that is expected to generate annual foreign exchange savings of $25 million to $30 million, while significantly reducing electricity generation costs.

The initiative aims to replace diesel based mining operations with grid supplied electricity. The move is projected to save around Rs. 25 million per day in diesel costs and reduce reliance on imported fuel.

Officials said the cost of coal is expected to decline by nearly $0.7 per ton, while the cost of power used for mining operations will fall from about 33 US cents per kWh to 13 US cents per kWh, marking a reduction of more than 60 percent.

Previously, mining operations in Thar were heavily dependent on diesel, with daily consumption ranging between 200,000 and 250,000 liters, including around 35,000 liters per day used only for dewatering activities. These costs were ultimately passed on to consumers through higher electricity tariffs.

To support the transition, an investment of around Rs. 5.3 billion is being made for grid stations and transmission infrastructure, enabling connection with HESCO’s 132 kV Islamkot grid station and supporting an offtake of nearly 60 MW for mining operations.

The government said the reform is also expected to reduce carbon emissions by nearly 80,000 tons annually, while future plans include shifting diesel powered mining vehicles to electric vehicles to further improve efficiency and sustainability.