Rain impact: Singareni struggles to achieve coal production target

While multiple factors have contributed, the primary reason for the decline in coal production is believed to be the rise in the number of rainy days. According to preliminary estimates, approximately 67 million tonnes of coal have been produced so far, falling short of the 72 million-tonne target set for the financial year 2024-25.

Peddapalli: Despite special incentives announced to employees to increase coal production, Singareni Collieries Company Limited (SCCL) is struggling to reach its target for the financial year 2024-25.

Though there are different reasons, an increase in the number of rainy days is said to be the main reason for the decline in coal production. According to rough estimates, so far, about 67 million tonnes of coal was produced as against the target of 72 million tonnes fixed for the financial year 2024-25. Leave alone this year’s target, the company has been unable to reach even the previous year’s target of 70.02 million tonnes.

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Per day, 2.5 lakh tonnes of coal is being produced in the month of March. At that rate, it would be tough to ensure production of the remaining five million tonnes in time with the financial year to end on March 31. Officials say the number of more rainy days had affected coal production this year.

Though there are 22 underground and 16 opencast projects, a majority of the coal is being produced in opencast mines wherein coal excavation was not possible if there was rainfall. So, the production has declined, they said.
Usually, the highest quantity of coal would be produced in April, May and June and there would be less mining in July, August and September due to the rainy season. However, there were rains in October and November too affecting production for several days, officials said.

Besides the closure of the Ramakrishnapur OCP project, the delay in launching of operations at the Venkateshwara Khani OCP in Kothagudem were said to be other reasons for the decline in the production.

Singareni authorities thought that production would start in Venkateshwara Khani in the month of March. However, that has not materialized. Company authorities had also planned to start mining in the Naini coal block in Odisha, but that also did not happen. After realising the issue in October, the management began efforts and announced a monthly special incentive scheme for two months in February and March to motivate employees and increase the production.

As a result, some areas saw excess production in March, however, the overall production still could not reach the target.