For the first time in nearly six years, the Singareni Collieries Company Limited (SSCL) achieved its annual coal production target in the FY 2023-24. In an interview with our Reporter, its Chairman and Managing Director (CMD) N Balaram, an IRS and former Director of Finance of the SCCL shared his focus areas, future vision and shift in energy production among other things.
Excerpts from the interview:
What has been your focus area since you took charge as SCCL CMD?
In the last five years, we were not able to achieve our 100 per cent target. But in three months (Q-4, FY 2023-24), we have achieved more than 125 per cent production. Coal will become extinct after 30 to 40 years, so our focus is on diversification. My focus is also coal production and dispatch. At present, we have only 234 MG of solar production. That is the cap to use. And now at the next level, we will take EV solar power production to 2,000 megawatts and pumped storage (a new concept).
We have identified two places, Yellandu and Medipally in Ramagundam to establish a 200 MG pumped storage plant. We are also exploring the possibility of entering into wind power. We have taken a study report from the Power Energy Consultants (PEC) Limited. Their engineers are doing data consulting. We are going to consult the National Institute of Wind Energy (around 2000 MG), so we will focus 100% on green energy.
The Union Ministry of Coal has set a 72 MT production target for Singareni and 1,080 MT across the country
The Coal Ministry has set a target of 72 MT. We will also be producing five MT in the Naini coal mine in Odisha. So we will exceed that target and produce 77 MT in 2025-26 and increase it to 80 MT in 2025-26. We can even touch 100 MT production in future. We are also coming with new coal blocks in Bhupalpally, Chennur and Adicherla and exploring where viable blocks are there as the government also advised us. So, focus will be in Telangana and outside Telangana.
60 per cent of the Singareni workforce operates in the UG mines. But the production is less. Is the SCCL suffering losses due to this?
In FY 2023-24, the losses were around Rs 2,200 crore from UGs. What profits we are making from the OCs with less production costs, we are cross subsidising the losses of the UG mines.
You said that you will turn Singareni into a welfare department…
We are working on three aspects. To provide better medical facilities to the workers. At present, we have six area hospitals and dispensaries. We are upgrading the area hospitals to the superspecialty ones. Secondly, we want to provide good water supply as 80% of the diseases are waterborne diseases. So we are establishing three water gravity filters at Ramagundam, Mancherial and Srirampur. Thirdly, the education of our employees’ children. We are trying to shift from the state to CBSE syllabus and digital mode in our schools.