Coal Minister Directs SCCL to Pursue New Mining Blocks and Boost Production Capacity

Union Coal and Mines Minister G. Kishan Reddy has directed Singareni Collieries Company Limited (SCCL) to ramp up coal production by acquiring new mining blocks and expanding its operational footprint to bolster India's energy security.

During a review meeting held at Singareni Bhavan in Hyderabad on Sunday, Kishan Reddy examined various aspects of SCCL's operations, including mine-level production figures, coal dispatch volumes, overburden management, current and planned mining ventures, regulatory approvals, and expansion strategies for the future.

The minister instructed SCCL to actively bid for mining blocks in the Ministry of Coal's forthcoming auction rounds to secure additional reserves and boost production capability. He also requested the development of a comprehensive strategic roadmap spanning 10 to 15 years to address India's rising power consumption needs.

Kishan Reddy emphasised that coal will continue playing a vital role in India's energy portfolio in the coming decades. He pressed SCCL to enhance its output while simultaneously reducing operational costs and raising efficiency standards. The minister noted that the company should prioritise sustained development aligned with the nation's long-term energy requirements rather than pursuing only short-term commercial gains.

Strategic imperatives for SCCL's future

Observing that intensifying competition within the energy sector demands improved performance from public sector mining companies, Kishan Reddy underscored the importance of raising quality benchmarks and productivity metrics. He also called for transparent engagement with the workforce to ensure employees grasp the company's operational challenges and strategic trajectory.

The minister proposed establishing a dedicated committee tasked with proposing structural reforms to support SCCL's long-term viability and expansion. He assured company leadership that the Central government stands ready to extend comprehensive assistance in executing the planned expansion initiatives.

Additionally, Kishan Reddy drew attention to the opportunities presented by coal gasification technology in India and recommended that SCCL initiate a demonstration coal gasification project. He proposed the Ramagundam industrial region as a potential location, noting the presence of fertiliser manufacturing and other industrial units that could leverage benefits from an integrated clean coal value chain.