Balancing Thar Coalfield’s Potential and Regional Industrial Development: An Inquiry for a Theoretical Proposal of Industrial Cluster

Abstract

There are 185 billion tons of coal reserves discovered in Pakistan, but the country has not amply capitalized on the coal industry to meet its energy demand. The literature is mainly focused on mining process and environmental aspects related to Thar coalfield. However, there is a gap between Thar coalfield and regional industrial development. This research inquires a theoretical proposal of industrial cluster for the regional industrial development across Thar coalfield. The aim is achieved through the following three objectives: (i) the agglomeration of firms based on coal reserves in Tharparkar, (ii) investigation of elements required for the formation of industrial clusters, and (iii) present a theoretical framework for the regional industrial development. Research is based on field study of Tharparkar and extensive interviews with management of Thar coalfield industry, local employees and field experts. The study finds gaps and suggests improvements in the areas related to the role of government and industry with the perspective of Thar coalfield. The proposed conceptual-theoretical framework is an analysis of internal and external factors with significant influences on the competitiveness of Thar coalfield. The important policy recommendations related to areas of infrastructure, support institutions, community involvement, technology, skill development and training, academia, related businesses and financial support services are given in this paper.