Telangana Explores Coal Block Rights for SCCL Expansion

The Telangana Government is exploring options to secure mining rights for two coal blocks adjoining existing Singareni Collieries Company Limited (SCCL) blocks. The move aims to supplement SCCL’s production as its reserves gradually deplete.

Chief Minister A. Revanth Reddy noted that SCCL was excluded from auctions for major coal blocks at Sattupalli and Koyagudem during the previous administration, forcing the company to forgo rights to blocks within its existing holdings. This exclusion is estimated to have caused a revenue loss of Rs 60 billion and potential profit loss of Rs 15 billion.

Representations from workers’ unions and stakeholders prompted the Government to explore remedial measures. “Shall we scrap the previous tenders? Or shall we pay above the bid amount to convince the Central Government to hand over the mining rights of the two blocks?” the Chief Minister asked at a press conference in Hyderabad on Monday, 22 September 2025.

Deputy Chief Minister Mallu Bhatti Vikramarka added that the Government is seriously considering resuming the two mining blocks and plans to represent the State’s position to the Central Government, seeking intervention to transfer mining rights to SCCL.

The administration has also directed discussions with SCCL workers’ unions and stakeholders regarding the company’s expansion plans. “We want Singareni to survive. Given its vast experience, the firm should compete with the private sector, including multinationals, in mining coal and other minerals,” he said.

Regarding the drop in coal prices following GST rate rationalisation, the Chief Minister acknowledged the financial strain on both SCCL and power distribution companies. The State is evaluating cross-subsidisation measures and may request viability gap funding from the Central Government to offset projected losses.

Telangana expects a revenue shortfall of Rs 7 billion due to GST rate changes. “The Central Government must provide viability gap funding as these losses arise from its decision. The State cannot be left to manage them alone,” the Chief Minister asserted. A formal communication to Union Minister of Coal and Mines G. Kishan Reddy is expected to seek such funding.