In a major development, the Telangana government has permitted Singareni Collieries Company Limited (SCCL) to participate in upcoming auctions for coal and other mineral blocks, a move described as crucial for the survival of the company and the livelihood of its workforce. The announcement was made by Deputy Chief Minister and Energy Minister Bhatti Vikramarka Mallu at the Dr. B.R. Ambedkar Telangana State Secretariat.

He recalled that in the past, all coal blocks in the Singareni region were allocated to SCCL. However, following the Supreme Court’s judgment, the Central Government began auctioning coal blocks to both government and private players. Singareni was barred from bidding due to apprehensions and emotional considerations. As a result, prime coal blocks at Sathupalli and Koyagudem went into private hands, leading to an estimated loss of ₹60,000 crore in revenue and ₹15,000 crore in profits for SCCL.

“Considering the future of 40,000 permanent and 30,000 contract workers and the survival of the company itself, we have decided that Singareni must secure new blocks through auctions,” the Deputy CM stated. He emphasized that when other PSUs can participate, Singareni should not be left out. Winning auctions will not only protect jobs but also strengthen the State’s financial interests through taxes and royalties.

Currently, SCCL operates 38 mines, but with reserves declining, 10 mines may close within the next five years, potentially affecting 8,000 employees. Annual coal production of 72 million tonnes could fall drastically unless new reserves are secured.

Diversification into Green Energy and Global Minerals

The Deputy CM also unveiled Singareni’s broader diversification strategy. Under “Singareni Green Energy Limited,” the company is advancing solar and pumped storage projects. Simultaneously, under “Singareni Global,” it will explore opportunities in the international critical minerals sector, guided by studies from an international consultant. As part of this expansion, SCCL has secured an exploration license for gold and copper in Raichur and Devadurga, Karnataka, with a 37.7% royalty share. This will ensure long-term financial inflows once mining operations begin.

SCCL CMD N. Balaram expressed gratitude to the State Government, noting that the company has the skilled workforce and capacity to reach 100 million tonnes of production annually if provided with sufficient coal blocks.

Peddapalli MLA Vijaya Ramana Rao, Director (Operations) L.V. Suryanarayana, and Director (Planning & Projects) K. Venkateshwarlu attended the press conference.