HYDERABAD: Coal and Mines Minister G Kishan Reddy on Tuesday announced that the Centre has allocated the Tadicherla-2 Coal Block to the Singareni Collieries Company Limited (SCCL), describing it as a major step towards strengthening the company’s long-term financial sustainability, boosting coal production and generating employment in Telangana.
Addressing a press conference in New Delhi, Kishan said the allocation was made without auction after legal clearance and Prime Minister Narendra Modi’s approval. He said no coal block had been allotted to any public sector undertaking since 2020, with SCCL being the only exception.
Kishan said the block contains about 182 million tonnes (MT) of Grade-8 coal and could produce 6 MT annually for 40-50 years, generating more than Rs 64,000 crore in revenue. Direct allocation would save SCCL around Rs 2,550 crore in auction premiums, while the Telangana government was expected to receive nearly Rs 16,000 crore through royalties and other revenues. The project was also expected to improve SCCL’s financial position, increase production and create around 1,200 jobs.
Kishan said the Centre has consistently supported the 137-year-old SCCL over the past 12 years under cooperative federalism. He said the company employs around 41,000 permanent and 31,000 contract workers and operates 39 mines, including 21 underground and 18 opencast.
Kishan said the Centre has expedited environmental and forest clearances while helping SCCL address production challenges.
Kishan says issues affecting Naini Coal Block resolved
Following a recent review meeting in Hyderabad, the management was advised to increase production, reduce costs and improve efficiency.
Referring to the Naini Coal Block in Odisha, Kishan said he had intervened with the Odisha government to secure its allocation to SCCL. Production has begun at the block, which has reserves of 340 MT, sufficient for 30-35 years, with an annual production capacity of 10 MT. The project is expected to generate nearly Rs 75,000 crore in revenue and create around 1,500 jobs.
Kishan noted that SCCL remains under the administrative control of the Telangana government, but said he has regularly reviewed its operations as a representative from the state to help improve its performance. He said comparative studies with Western Coalfields Limited had also been undertaken to identify ways to improve production, transportation and cost efficiency.
He added that issues affecting the Naini Coal Block, including site-visit certification norms, had been resolved through a self-declaration mechanism to accelerate production.