Rising coal demand improves prospects of SCCL reaching production target

Coal company gets green nod for new mines in Aug., Sept.

In the backdrop of increasing demand for energy with the economic activity returning near normalcy, as it was before the COVID-19 pandemic lockdown last year, the demand for coal too is on the rise improving the prospects of Singareni Collieries Company Limited (SCCL) crossing the target of producing 70 million tonnes (mt) coal this fiscal.

“We have plans to commence production in at least 10 new mines over the next three years and add production of at least 5 mt every year to reach a production target of 85 million tonnes by the end of 2023-24,” a senior executive of the coal company said adding that the company has secured environmental clearance for the Cluster of GDK-1 and 3 and GDK-2, 2a and 5 (Godavarikhani) opencast and underground mines with a normative production capacity of of 4.1 mt per annum.

The plan to add at least 5 mt production capacity every year for the next three years has been prepared keeping in mind the closure of some existing mines during the period.

Along GDK (Godavarikhani) cluster, JVR (Jalagam Vengal Rao) OC-2, VK (Venkatesh Khani), the company has plans to start production in MVK, Goleti, Rompedu (JK), Tadicherla, Penagadapa and New Patrapada (in Odisha) over the next three years.

A recent move by the Ministry of Coal to regulate coal supply to thermal power projects to ensure required coal supplies to plants having higher plant load factor was a clear indication of rapidly increasing demand of energy, the official said. He cited the example of SCCL itself as the production in the first five months of the current fiscal was 25.4 mt against 14.79 mt during the same period during the previous fiscal.

Similarly, the supplies (dispatches) of coal this year has been 26.71 mt till August-end of 2021-22 against 14.18 mt during the same period of 2020-21. Increase in the production of supply, which is nearly 72% and over 88%, respectively this fiscal compared to the last fiscal also makes the demand for fuel clear.

Along with GDK opencast and underground mines (5) cluster and JVR opencast-2 extension, which also secured environmental clearance last month, the SCCL management has plans to commence production in the Naini (Odisha) coal block this fiscal, at least during the fag end of 2021-22 in the third one. Over the next couple of years, the three projects are expected add about 10 mt production, the SCCL official said.