SCCL has also decided to foray into the international critical minerals sector. (Representative image)
Credit: Special Arrangement
Hyderabad: Telangana government owned coal mining entity Singareni Collieries Company Limited (SCCL) as part of business expansion has secured an exploration license for gold and copper and the work will begin soon. SCCL has also decided to foray into the international critical minerals sector, participate in auctions conducted by the central government and also take up large-scale projects towards Green Energy .
“As part of business expansion, Singareni recently secured an exploration license in the auction of critical mineral blocks in Raichur and Devadurga areas of Karnataka for gold and copper, with a 37.7 per cent royalty share. Exploration work will commence soon.
Once mining begins, whoever operates the mine will pay 37.7 per cent royalty to Singareni throughout the mine’s lifespan, bringing substantial financial benefits to the company,” said Telangana deputy chief minister, Mallu Bhatti Vikramarka.
Talking to reporters at state secretariat on Friday, the deputy chief minister said that due to the inability to participate in auctions until now, Singareni lost two major blocks and revenue of about Rs 60,000 crore.
“Workers’ unions and the Singareni Board have been urging the Government to allow participation in auctions. Considering the livelihood of 40,000 Singareni workers and the survival of the company itself, we have decided that Singareni will participate in the upcoming auctions,” said Deputy Chief Minister Bhatti Vikramarka.
He stated that keeping in view the future of thousands of workers, the company’s survival, and the State’s financial interests, Singareni has now been permitted to participate in coal block auctions conducted by the Union Coal Ministry and to secure new blocks.
He recalled that earlier all coal blocks in the Singareni region were allocated to Singareni itself. But after the Supreme Court judgment, the Central Government began auctioning coal blocks to both government and private entities. However, due to misconceptions, apprehensions, and emotional reasons, Singareni was barred from participating in these auctions. As a result, two major blocks adjacent to Singareni – Sathupalli and Koyagudem – went into private hands, causing a revenue loss of Rs 60,000 crore and profit loss of Rs 15,000 crore to Singareni. He termed it a grave mistake, stating that not participating in auctions benefitted private companies instead.
He added that while private companies securing blocks through auctions would still bring royalty income to the State, if Singareni secured them, it would safeguard the future of 40,000 permanent employees and 30,000 contract workers, apart from ensuring the survival of the public sector company itself. He clarified that such auctions would not generate revenue for the Centre.
“When other State and Central PSUs are participating in coal block auctions and securing blocks, why should Singareni be left out?” he asked. By winning auctioned blocks, Singareni and the Telangana Government would benefit through royalties as well as taxes, he emphasised.
Currently, Singareni operates 38 mines, but with coal reserves depleting, 10 mines are set to shut down within the next five years, potentially rendering 8,000 employees surplus. To secure their employment, new mines are essential. While Singareni produces 72 million tonnes of coal annually, without new blocks, production could fall by more than half. Hence, to safeguard the livelihood of 40,000 direct employees and 30,000 indirect contract workers, and to ensure the survival of the company, the Government has decided to allow Singareni to participate in all future auctions.
Not just as a coal producer, Singareni is also venturing into thermal power, solar power, and green energy sectors. Under “Singareni Green Energy Limited,” the company is progressing towards setting up solar and pumped storage plants, for which consultants have already been appointed.
Given the rising demand for critical minerals globally, Singareni is preparing to enter this sector too. An international agency has been appointed to study opportunities for critical mineral production across the world. Based on its recommendations, Singareni will launch operations abroad under the banner “Singareni Global.”
SCCL Chairman & Managing Director N Balaram highlighted the company’s current mines, coal production, and challenges. He noted that though Singareni has the capacity and skilled workforce to produce 100 million tonnes of coal annually, lack of coal blocks is limiting this. With the Government now permitting participation in auctions, new opportunities have opened up for Singareni.