Deputy Chief Minister and Energy Minister Mallu Bhatti Vikramarka and Union Coal Minister G. Kishan Reddy at a meeting in Hyderabad on Friday.
Deputy Chief Minister and Energy Minister Mallu Bhatti Vikramarka on Friday urged Union Coal Minister G. Kishan Reddy to support Singareni Collieries Company Ltd (SCCL) by allocating coal blocks.
“Your taking charge as Union Minister of Coal has revived hopes for a bright future for Singareni. Request you to ensure allocation of coal blocks…,” he said, pointing out that as a ‘Telangana Bidda’ Mr. Reddy is familiar with local conditions and the contribution of the company for the development of the State.
Mr. Bhatti Vikramarka, who was speaking at the launch of the 10th round of commercial coal mines auction by Mr. Reddy here, said there is a provision in the amended MMDR Act, under Section 17A(2), to allocate coal blocks to the public sector entities. “Ignoring this and providing opportunities to private entities through auction [of coal blocks] undermines the government sector,” he said, citing how previously under a tripartite agreement between the Centre, State and SCCL, all activities related to coal resource exploration, new mine planning, and the initiation of new mines were undertaken through Singareni.
The company had 44 mining leases covering 600 square kms in the Godavari-Pranahita Valley area, with permission to extract 3,008 million tonnes of coal from 388 square kms. However, only half of this, about 1,585 million tonnes, has been extracted so far, leaving 1,422 million tonnes yet to be mined. While SCCL was ready to extract this coal, due to the amendments to the Act in 2015, it lost lease rights over the Godavari-Pranahita region and instead had to acquire blocks through auctions.
Singareni had requested the Coal Ministry to allocate four blocks – Sattupalli Block-3, Koyagudem Block-3, Shravanapalli Block, and PK OC dip side – under the provision. “Unfortunately, a decision was made to auction the four coal blocks. This is very disappointing and regrettable that our governments are not supporting a public sector company. The previous government prevented Singareni from participating in the auction,” he added.
While Sattupalli Block-3 and Koyagudem Block-3 were acquired by different companies, the Coal Ministry decided to allocate other blocks in the Singareni area through auctions as well.
Power crisis
Mr. Vikramarka, who also submitted a representation to the Union Minister, cautioned that without new mine allocations, SCCL’s existing mines will gradually deplete. The company, a 49:51 joint venture between Centre and Telangana government, currently operates 39 coal mines – 17 opencast and 22 underground with a production potential of about 72 MTPA as on 2024-25.
In the next five years, eight underground mines and three open-cast mines will close and by 2032, five more underground mines and six open-cast mines will shut down. By 2037-38, another five mines will close.
If the SCCL had to operate within its present mining leases, coal production by 2047 is projected to be about 35 million tonnes per annum, resulting in a power crisis in the State. SCCL also supplied coal to power plants in neighbouring States.
Such a scenario would mean a reduction in the SCCL workforce from existing 40,000 to 8000 over next 15 years as well as potentially resulting in closure of the company. “As ministers and leaders from Telangana, we cannot imagine or wish for such an outcome,” he said.
