Singareni plans coal sales centre in Hyderabad

Move aims to facilitate coal supply to industries, especially small-scale units, that require limited quantities

Peddapalli: The Singareni Collieries Company Limited (SCCL), which has already diversified into thermal, solar and hydel power generation, is now exploring new avenues to expand its business operations further.

As part of this expansion, SCCL is planning to open a coal sales centre on the outskirts of Hyderabad to cater to the growing demand for coal in the State capital. The move aims to facilitate coal supply to industries, especially small-scale units, that require limited quantities.

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By setting up the sales centre closer to Hyderabad, the company aims to increase its customer base and boost coal sales, while enabling industries to procure coal at more affordable rates. Currently, SCCL produces 72 million tonnes of coal annually through its 22 underground and 16 opencast mines. In addition to supplying coal to thermal power stations within the State, the company also caters to power plants and industries in other States.

A significant number of industries in Hyderabad procure coal from Singareni, transporting it either by rail or road. While large industries manage bulk transportation with ease, small-scale units are struggling due to high transportation costs when sourcing smaller quantities. To ease this burden, SCCL has decided to establish a local sales centre. Chairman and Managing Director N Balram has directed officials to draft proposals for the centre and explore cost-effective transportation options.

Officials noted that transporting a tonne of coal to Hyderabad by road costs around Rs 1,600, while rail transport would reduce the cost to approximately Rs 500 per tonne. The company is therefore exploring a potential agreement with the railways to ensure coal is supplied at the lowest possible cost to end-users.