Singareni Collieries Company Limited (SCCL), a state-run mining company jointly owned by the Government of Telangana and Government of India, has set a target of achieving 100 million tonnes (mnt) of coal production by FY30 from current levels of 65 mnt.
The company carries out coal production in mines spread across Telangana. However, it is set to explore mining prospects in Odisha too.
This comes after the miner made progress with regards to the development of Naini coal mine which is located in Odisha. It is to be noted here that Naini mine with annual capacity of 10 mnt, was allocated by the government way back in 2015, but has been facing delay in an absence of clearance required for mine opening.
In a significant recent development, SCCL has signed a Memorandum of Understanding (MoU) with Damodar Valley Corporation (DVC) for sale of 4.3 mnt coal per annum from Naini mine.
That apart, the company has also earmarked VK-7 opencast mine along with eight new projects that are to be operationalised in the next 5 years in a bid to attain the 100 mnt-production mark.
Efforts to ramp-up production
SCCL had attained new coal production milestone by recording an output of 65.02 mnt in FY22. This marked a significant recovery compared to FY21 when the output fell to a 7-year low of 50.58 mnt.
Nevertheless, production in ongoing fiscal (FY23) has been impacted by incessant rains during monsoon season. During April-November 2022, the company’s coal production of 40.49 mnt fell short of 40.86 mnt output recorded in year-ago period.
In order to achieve the target of producing 70 mnt during FY23, SCCL has decided to utilise the remaining months of the fiscal optimally by raising the production levels.
Setting a new benchmark, SCCL recorded highest single day production of 0.224 mnt for FY23 on 20 December, 2022. Meanwhile, total production in December has increased 20% y-o-y to 5.38 mnt till 25 December, 2022.
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