The management of Underground Coal Gasification (UCG) Project Thar has decided to close down the Project due to unavailability of funds. The managing directors of UCG Project Thar, Dr Muhammad Shabbir, has sent a letter to the Sindh Government as a notice of closure, requesting it to make nomination for handing over/taking over of the assets of the project. The management of UCG Project has also issued discontinuation of services letters to all employees, describing them as a financial burden.

The project of 100MW was approved by ECNEC in December 2010, with an estimated cost of Rs 9 billion; however only Rs 3 billion has been released for project from which 08MW Syn gas power plant has been established at Thar, including Gasifier Wells, Gas Treatment Plant, laboratories and RO plant despite the fact it has the potential to produce abundant green coal energy. The UCG Project Thar conceived, developed and successfully operated under the supervision of renowned scientist Dr Samar Mubarakmand was producing 8MW of electricity since May 28, 2015 but its funds were blocked by the federal government since the very day it produced its first Megawatt of electricity.

The government has spent Rs 3 billion out of promised Rs 10 billion but for the last two years it failed to construct a transmission line to supply 8MW power to national grid. Moreover, it took no necessary administrative steps towards supplying electricity to the nearby towns of Tharparkar.

It has also been claimed that instead of enhancing the capacity of UCG power facility to 100MW as per initial agreement, no budgetary allocation has been sanctioned to this project for the last two fiscal years. Due to this, the project is now is a on the brink of a disaster. Neither is federal government showing any interest in funding this unique project nor's Sindh government in willing to take over despite several UCG management requests. Manpower was hired through proper channel from the platform Government of Sindh for the implementation of coal gasification scheme vide a meeting held on January 08, 2010 at Planning & Development Department, Karachi.

The first GB meeting was headed by Dr Samar Mubarakmand as Chairman GB along with Additional Chief Secretary Development P&D Department and Secretary C&EDD as vice chairman and member. In that GB meeting it was clearly stated that Secretary Coal and Energy would act as Principal Accounting Officer instead of MD, UCG and recruitment and appointment of manpower would strictly follow Government of Sindh recruitment rules. The offer letters dispatched to officers clearly constitute an agreement between the said employee and Coal and Energy Development Department, Sindh. Presently, 457 employees are serving in different capacities at this project. On May 19, 2017 UCG management issued termination letters to all employees working for almost seven years.

Copyright Business Recorder, 2017