Odisha government land transfer for Singareni mines will boost Telangana power sector

New Delhi [India], July 6 : After approval for handing over 643 hectares of forest land by the Odisha government, decks have been cleared for Singareni Collieries Company Limited (SCCL) to start mining coal in the Naini coal mine in Odisha. The Odisha government approved handing over 643 hectares of forest land to the coal company on July 4.
A Coal Ministry release said that the mine was facing abnormal delay in handing over of forest land after receipt of Stage-II forest clearance in October 2022 which has delayed the operationalization of the mine.
The state PSU was allotted the Naini coal block for exploration on August 13, 2015 and the final allotment could happen due to the efforts made by Union Minister of Coal and Mines G Kishan Reddy.
Though the Environment Ministry had sanctioned FC clearance, Odisha government had not handed over the forest land stating that Wild Life Management Plan has to be prepared by Wild Life Institute.
After the approval, the state owned company is set to start the production of coal in the block. The newly-allocated project will help enhance energy infrastructure in the region as well as in the country.
The Naini Coal block is located in Odisha's Angul District. It boasts a Peak Rated Capacity (PRC) of 10 Million Tonnes Per Annum (MTPA) with a coal grade of G-10. This allotment is a major milestone for Singareni Collieries Company Limited. As per the estimates, the block has a significant 340.78 million tonnes of mineable reserve.
The increased production from the Naini coal mine is anticipated to generate significant revenue and profits for SCCL, with an additional Rs 3000 crore in revenue and Rs. 50 crore in profit annually in view of increased 10 MT production. It will also boost statutory revenues like GST, royalty, DMFT contributions, and CSR funds, benefiting both state and central governments.
As per the details on the company's website, the governments of Telangana and India jointly own the Singareni Collieries corporation Limited (SCCL), a government coal mining corporation, on a 51:49 equity basis.
The Coal Ministry release said that after taking charge, G Kishan Reddy held extensive discussions with the Odisha government to resolve the long pending issue and operationalize the mine at the earliest in the spirit of cooperative federalism.
"As a result, approval for handing over of 643hectare of forest land has been accorded to SCCL on July 4, 2024."
Reddy thanked the Odisha Chief Minister Mohan Charan Manjhi for quickly resolving this issue.
"It is expected that SCCL will commence the production from the mine shortly. This step will further strengthen and secure the energy security needs of Telangana," the release said.