The Singareni Collieries Company Limited (SCCL), which stood as a role model to all the coal mines in the country by wriggling out of losses in the past, seems to be witnessing a flip-flop situation now.
Is the company in reversion mode? Yes, says the official statistics of the Singareni. It had incurred losses of around Rs. 150 crore in the first two months of this fiscal. If sources are to be believed, the company has incurred losses for the first time after over a decade. Lethargic coal miners and officials and low coal production are cited as reasons for the company running into losses. The Singareni spread in four districts- Karimnagar, Adilabad, Warangal and Khammam- has 35 underground mines and 15 open cast projects. Against the targeted coal production of 11.21 MT this fiscal, it could only achieve 9.44 MT. Officials claim that the blistering heat wave conditions in the past and heavy rainfall at present has collectively resulted in the company facing losses. They also say that coal production cost is higher than the selling price. The company’s coal production cost stood at Rs. 1,893 for one tonne whereas the selling price was only Rs. 1,823. At this juncture, the government should intervene and take measures to increase the selling price to overcome the losses, says sources.
Telangana Boggu Ghani Karmika Sangham (TGBKS), the recognised trade union, president K. Mallaiah hopes that the losses would be overcome as fluctuating weather conditions were a commonplace. He said that the management should also avoid planning lapses to increase the production and benefit the miners. He said that the high production cost could be avoided by increasing the coal production.
