Singareni gets Rs 40 crore escrow deposit of Dorli-2 opencast mine

The Coal Controller Organisation has refunded nearly Rs 40 crore, including interest, to SCCL following the successful closure of the Dorli-2 Opencast Mine. An independent audit confirmed compliance with environmental, rehabilitation and mine closure obligations prescribed under the approved plan

Peddapalli: In recognition of the successful closure of the Dorli-2 Opencast Coal Mine in the Bellampalli area in accordance with the guidelines prescribed by the Union Coal Ministry, the Coal Controller Organisation (CCO) has refunded approximately Rs 40 crore, including interest, that had been deposited at the commencement of the project to the Singareni Collieries Company Limited (SCCL).

Singareni obtained approvals for the Dorli-2 Opencast Mine in the Bellampalli area during 2013-14. As required, the company deposited an estimated amount of Rs 26.79 crore with the State Bank of India in the name of the CCO towards the implementation of environmental and mine closure activities.

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After producing coal for seven years, the mine was closed during 2023-24. Throughout the project period, SCCL implemented the committed environmental and rehabilitation measures in a phased manner.

SCCL meticulously implemented all components of the mine closure plan, including environmental protection measures, land reclamation, rehabilitation activities and other statutory requirements, from the beginning of mining operations until its closure.

To verify whether all commitments had been fulfilled, a third-party audit was conducted in July 2024 by the Indian Institute of Engineering Science and Technology (IIEST), Shibpur, West Bengal. The audit confirmed that all mine closure obligations had been satisfactorily completed and that SCCL had fully complied with the prescribed norms.

Based on the audit findings, Deputy Assistant Coal Controller Akash Shiva Hare, in a recent communication, informed SCCL that the deposited amount, along with accrued interest, would be refunded.

Out of the total refundable amount of approximately Rs 40 crore, 90 per cent, amounting to Rs 36.63 crore, is being released immediately. The remaining 10 per cent will be released after examination of provisions related to Just Transition measures. Thus, nearly Rs 40 crore is expected to be credited back to SCCL.

The refund is being viewed as a recognition of SCCL’s commitment to environmental sustainability, transparency and faithful implementation of all commitments made under the approved mine closure plan. It also highlights SCCL’s continued emphasis on sustainable mining practices that balance resource extraction with environmental conservation.

Singareni Director (Projects & Planning) K Venkateswarlu stated that the refund of the escrow deposit was a testimony to SCCL’s sincere and responsible approach towards mine closure activities.