The Singareni Collieries Company Limited (SCCL), which fears facing the inevitable challenge of losing key mining areas that would lead to decline in output and impact its performance, may adopt a more aggressive approach to sustain output.

With no new mining blocks under its bag for almost nine years and production declining from the existing three major mining areas of the 11 it has, the Telangana based coal miner is under stress. SCCL has been knocking at doors of the Central Government to consider allocating fresh mines to it in the region instead of offering them to private players, who have won it through the auction rounds.

Asked what is stopping SCCL from participating in the auctions, an official source said “Nothing. But the financial might of the private players becomes a deterrent.”

Couple of days back SCCL met with the major national trade unions to apprise them of the situation and seek their support. The Unions were unanimous in their view that they will support the management in any strategic decision taken by them to enhance production and sustain the growth prospects of the company.

“If action is not taken now then by 2040 the output of SCCL will be almost half of its current production of 70 MT,” an official said. The State Government owns 51 per cent stake in the entity and remaining 49 per cent is held by the Union Government. SCCL currently has 39 mines -- 17 opencast and 22 underground mines in six districts of Telangana --  in 11 mining areas.

In fact, in June when the 10th round of Coal mine auctions was launched by the Union Ministry of Coal in Hyderabad, the State Deputy Chief Minister, who also holds the energy portfolio, Mallu Bhatti Vikramarka, had raised the issue with the Coal Ministry top team.

Besides, not all private miners have been successful in the areas allocated to them. Fine examples are the two mines allocated to private miners: Sattupalli and Koyagudem. Private players were not to succeed, according to those in know. Now, Sravanapalli mine has been put up for auction.

Though the new local government of Telangana has given its nod to take part in auction, SCCL has not taken any decision. SCCL has achieved 83 per cent of its target for August 2024 (August target 4.54 MT Achieved 3.76 MT). For the full financial year, the target is 26.39 MT target as on today it has achieved 24.70 MT, that is 93.6 per cent.

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