The Thar Coal Block-I Power Plant is a combined coalmine and coal-powered energy generation project in Mithi, Tharparkar District, Pakistan. The 1,320 MW project is estimated to cost around 2.5 billion USD and is being developed as part of the China–Pakistan Economic Corridor (CPEC). Shanghai Electric holds the controlling share of this project. Civil works started in October 2019 and the first 660 MW power unit is planned to be operational by August 2022. The coal for this project is locally sourced lignite.

Project Impacts

• Land Acquisition, Displacement, and Resettlement: Nine villages will be impacted by the project, but no official land acquisition and resettlement plan has been published and there is a lack of clarity on compensation payments and disagreement between the government and local people over land categorisation. The impacts of mining and plant construction activities are already being felt in the villages of Bhave Jo Tar, Tilvai, Varvai, and Khario Ghulam Shah, where locals have been dispossessed of their land with minimal compensation.
• Employment: Although the company claims to employ local people, most senior, skilled, and semi-skilled jobs have been taken by people from outside the area. There have been protests after workers were fired without notice or severance pay.
• Land Degradation: Land degradation linked to the massive excavation for the mine will severely impact the unique drought-adapted ecology, especially drought-resilient plants that provide fodder for livestock, which is an important local livelihood source.
• Air Pollution: Coal plants produce airborne pollutants that increase the risks of serious health problems, and carbon emissions that jeopardise Pakistan’s commitments to reduce emissions under the Paris Agreement. Dust from construction and trucks is also causing respiratory illnesses in the project area.
• Water Crisis: Extensive water use is putting pressure on local water supplies and causing pollution of groundwater that is used by local people, who depend on wells for their day-to-day needs.