State-owned Singareni Collieries Co Ltd has achieved financial closure for its proposed Rs 6,000-crore thermal power plant project coming up in Adilabad district of Andhra Pradesh, marking a significant step in the coal miner's foray into power.
Power Finance Corporation (PFC) has agreed to provide the total debt component of Rs 4,000 crore for the proposed 2X600 MW power project, Mr S. Narsing Rao, SCCL's Chairman and Managing Director, told press persons here on Friday.
The project is likely to be commissioned by April 2014.
New mines
SCCL has plans to start four new mining projects in 2011-12 that will give an additional production capacity of 3.84 million tonnes a year. SCCL, owned by the Government of Andhra Pradesh (51per cent) and Government of India (49 per cent) touched a total coal production of 51.33 million tonnes, against a revised target of 50.5 million tonnes in 2010-11.
“Out of the four new projects, one is an underground mine and three open cast projects,” Mr Rao said.
While cost of production from underground mines is about Rs 2,357 a tonne, that from opencast mines is around Rs 1,130 a tonne, with the aggregate cost of production of the company being Rs 1,392 a tonne. “The average sales realisation during the year was about Rs 1,610 a tonne, including the premium we charge through our e-auction sales,” he said.
The company is also upgrading its technologies to enhance production — two such projects are being taken up in its existing mines this fiscal that is expected to provide an additional capacity of 1.46 million tonnes.
He did not expect any substantial increase in the company's coal prices this fiscal. “There could be some marginal corrections in one or two grades, but no substantial hikes,” he pointed out.
The company's turnover touched Rs 2,050 crore, the highest in its history and 14 per cent more than the previous fiscal. Its net profit during the year was about Rs 320 crore.