The Power Division has unveiled a major overhaul of Thar coal mining operations, projected to save $25–30 million in foreign exchange annually while slashing electricity generation costs.

The reform will replace diesel-powered mining equipment with grid-supplied electricity, cutting daily diesel expenses by an estimated Rs. 25 million and reducing dependence on imported fuel.

Officials stated that coal costs could drop by nearly $0.7 per ton, while electricity costs for mining will fall from 33 US cents per kWh to just 13 cents—a reduction of over 60%.

Thar’s mining operations have historically relied heavily on diesel, consuming 200,000–250,000 liters per day, including roughly 35,000 liters for dewatering alone. These costs have traditionally been passed on to consumers through higher electricity tariffs.

To facilitate the transition, the government is investing approximately Rs. 5.3 billion in grid stations and transmission infrastructure, linking operations to HESCO’s 132 kV Islamkot grid station and enabling a 60 MW power offtake for mining.

The initiative is also expected to cut carbon emissions by nearly 80,000 tons annually. Future plans include converting diesel-powered mining vehicles to electric, further boosting efficiency and sustainability.