Stop of SCCL coal blocks' auction, MP pleads PM

Hyderabad Malkajgiri MP Revanth Reddy on behalf of the Singareni Collieries Company Limited (SCCL) has written to Prime Minister Narendra Modi seeking the withdrawal of the Centre's decision to auction four coal blocks of the Singareni Collieries. The auction notification is dated October 12, 2021.

Recently while most of the coal mines in the country were reeling under shortage of supplies, Singareni Collieries had enough supplies to sustain for two week in the time of crisis.

During 2019-2020, the company had produced 60.4 MT of coal and supplied about 82 per cent of coal to power generation units, now it targets to produce 80 MT by FY2023-2024 and 80 per cent of the supplies would go to power plants.

The company has proposed to produce 11MTY to reduce the import of coal for power generation. It is feasible to extend the capacity of the existing mines also the leases. The extension of the existing mines proposed falls in these blocks – Koyyalagudem Block III, Sattupalli Block III, Shravanapalli, and Kalyanikhani Block G.

The Centre's decision to auction the collieries as part of the 3rd tranche of the auction of coal mines is against the interests of all the stakeholders in the region.

The decision will cause huge loss to the company because SCCL had invested huge sums of money in exploration and infrastructure development such as laying of the railway lines in the said areas.

The government move is causing immense stress to the people of the State because it is the only coal producing company in public sector in the region that provides jobs to thousands.

Opposing the move, the employees of the company had also launched a strike from December 9 for three days seeking withdrawal of the auction decision.