Singareni Collieries Company Ltd (SCCL), the miner operating in Telangana, has reported a substantial decline in coal production during the first quarter of FY21. The company attained production of 9.5 mn t coal in Apr-Jun’20 period, down by 44% y-o-y from 17.09 mn t in corresponding period last year.
Mining activities were badly affected due to COVID-19, as the company was forced to announce temporary lay-off of staff at various mines from 1 Apr’20, in accordance with the lock-down restrictions imposed by the government. Consequently, the monthly production was reduced to mere 3 mn t in Apr’20.
However, with partial resumption of operations, production slightly improved to 3.27 mn t in Jun’20 against 3.23 mn t in May’20. Still, the total volume remained 6.73 mn t lower than the target of 16.23 mn t set for the first quarter.
Coal Dispatch:
Coal supply by the company has also failed to pick-up in the dull market conditions, as the volume shrunk nearly to half in the first quarter period. Total dispatch during Apr-Jun’20 period was recorded at 8.47 mn t against 16.84 mn t in the corresponding period of previous fiscal.
A slight improvement was noted in monthly dispatch for Jun’20 as the same increased 13% m-o-m to 2.88 mn t against 2.55 mn t in May’20.
New Development:
In the 553rd board of directors meeting held last month, SCCL has given approval for five new open cast mining projects apart from purchase of 25 dumpers.
Besides, the company has also cleared proposals for expansion of Dorley OCP (Open Cast Project) and GDK-7 in Godavari Khani, and over burden contract for JVROC-2 in Kothagudem and KKOC project in Mandamarri.
Going forward, coal production target of 70.35 mn t coal has been set for the current fiscal.
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