Singareni Collieries Company Limited is all set to float tenders later this month for mine development operator for the development of the Naini coal block in Odisha.

The State-owned mining company, which is seeking to step up its coal output as the new thermal power project comes up in Telangana, is keen to take up production at the Naini coal mine which is estimated to have potential for 450 million tonnes of coal.

Following a detailed review meeting of the Naini coal block development plan and efforts of the mining company to step up coal output, N Sridhar, Chairman and Managing Director of Singareni Collieries, decided while the tenders will be floated in the second week of may, it is proposed to begin production from the mine within 36 months after securing all mandatory clearances.

The mining company decided to engage the third party mine developer as it is located in another State and far away from its existing mining infrastructure.

In January 2016, when Singareni invited expression of interest, 14 mining development companies both domestic and international, showed interest to take part in the mining development initiatives.

As the company aims to increase the production target to meet the growing need, it is seeking to open up seven new mines during 2016-17 and 8 more during 2017-18. 

SCCL has set a target to increase output by at least 10 per cent every year. As against production of 52.54 million tonnes during 2014-15, the coal production was significantly increased to 60.38 mt. It seeks to continue to sustain the increase in output. The company has been steadily stepping up output over the past few years from its production of 36.14 mt in 2005-2006.

To supply superior quality coal to its customers, the company is also in the process of setting up several coal washeries through private players.

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