Singareni Eyes 2 Telangana Coal Blocks in Centre’s 16th Auction
The proposed expansion comes amid concerns over coal availability for Telangana’s thermal power stations and efforts to reduce dependence on supplies procured from outside the state.
Hyderabad:The Singareni Collieries Company Limited (SCCL) is preparing to participate in the 16th round of commercial coal block auctions conducted by the Union coal ministry, with its focus on the Sravanapally and Koyagudem blocks in Telangana.
The auction is scheduled for December 3, while October 16 is the last date for submission of bids. The coal ministry has put up 25 blocks across nine coal-bearing states, including Telangana and Odisha. Of these, 21 are fully explored and four partially explored.
Government sources said the state government had directed the SCCL management to participate in the bidding as the two blocks were considered crucial for the company’s long-term operations. The Sravanapally opencast mine is located in Nennela mandal of Mancherial district, while Koyagudem OCP-3 is in Tekulapally mandal of Bhadradri Kothagudem district.
The move assumes significance as several Singareni mines have exhausted their reserves or have been closed. Officials recently informed a review meeting chaired by Chief Minister A. Revanth Reddy that 14 coal blocks under SCCL had already been shut.
The company also faces the prospect of a decline in production as more mines are expected to cease operations in the coming years. Assessments indicate that the closure of four mines by 2027-28 could reduce SCCL’s annual output by 12.51 million tonnes.
Officials said securing new blocks was essential to maintain production, protect employment, ensure coal supplies to power plants and sustain economic activity in Telangana’s coal belt.
SCCL is also understood to be examining additional coal blocks in Odisha near the Naini block, which is already under its control. Possible options include Nuepatrapora, Nuvagaon Telisahi, Arkhapal Srirampur and Meenakshi Central. The company, however, has not officially confirmed plans to bid for these blocks.
The proposed expansion comes amid concerns over coal availability for Telangana’s thermal power stations and efforts to reduce dependence on supplies procured from outside the state.
