Special Correspondent

HYDERABAD: The State-owned Singareni Collieries Company Limited (SCCL), premier coal supplier to power stations in the South, will set up its own thermal power station with a capacity of 500 MW at Srirampur in Adilabad district.

Of this 500 MW capacity, the company will use 125 MW to meet its own power requirements in coalfields and employees housing colonies dispensing with the purchases from the AP Northern Power Distribution Company Limited, and sell the remaining 375 MW.

Disclosing this at a press conference here on Friday, S. Narsing Rao, CMD, SCCL, said DPR for his undertaking’s first power project, which would be a pit-head station with coal mines at its hand, was being prepared.

The coal reserves of SCCL have been estimated at 9 billion tonnes spread over 400 sq km in four districts. The company is presently supplying coal to a majority of thermals stations in Andhra Pradesh and some in Maharashtra, Karnataka and Tamil Nadu. It wants to tap underground coal gas also to set up power stations in future.

Record production

Mr Rao said the company had achieved a record production of 40.60 million tonnes (MT) during 2007-08 as against the target of 38.04 MT fixed by the Government of India - a 8 per cent growth rate. The target fixed for 2008-09 was 43.56 MT.

As productivity in underground mines improved, the company wiped out losses and reported an after-tax profit of Rs. 190 crores for the year with a turnover of Rs. 5,157 crores.

He did not want to make any commitment on the level of bonus being paid to the employees on the ground that the matter was within the domain of the Joint Bipartite Consultative Committee of Coal Industry.

Mr Rao was “happy” to announce that 2007-08 was strike-free for the SCCL for the fist time its 130 years of history.