Singareni to enter auctions, expand into energy and minerals: Dy CM Bhatti Vikramarka
Deputy Chief Minister Mallu Bhatti Vikramarka announced that Singareni Collieries Company Limited will participate in upcoming coal block auctions and diversify into energy and mineral sectors. The move comes after the company lost Rs. 60,000 crore in potential revenue due to previous auction restrictions. Singareni has already secured mineral exploration licences in Karnataka and is planning global operations under the banner ‘Singareni Global’.
Hyderabad: Deputy Chief Minister Mallu Bhatti Vikramarka announced that Singareni Collieries Company Limited would participate in the upcoming auctions and venture into other sectors in the best interest of workers, besides ensuring its survival.
Due to its inability to participate in auctions so far, Singareni had lost two major blocks and revenue of about Rs. 60,000 crore. Workers’ unions and the Singareni Board had been urging the State Government to permit the company to participate in auctions, he said at a press conference here on Friday.
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At present, Singareni operates 38 mines but with coal reserves depleting, 10 mines are expected to shut down within the next five years, potentially rendering 8,000 employees surplus. Singareni produces 72 million tonnes of coal annually and without any new blocks, production could decline by 50 percent.
“When other State and Central PSUs are participating in coal block auctions and securing blocks, why should Singareni be left out?” Bhatti Vikramarka asked.
Due to misconceptions, apprehensions and emotional reasons, Singareni was barred from participating in these auctions. As a result, two major blocks adjacent to Singareni – Sathupalli and Koyagudem – were secured by private companies, he said.
The Deputy Chief Minister explained that private companies securing blocks through auctions would generate royalty income for the State.
However, if Singareni secured them, it would safeguard the future of 40,000 permanent employees and 30,000 contract workers, he said, clarifying that such auctions would not generate revenue for the Central Government.
As part of its business expansion, Singareni recently secured an exploration license in the auction of critical mineral blocks in Raichur and Devadurga, Karnataka for gold and copper, with a 37.7 percent royalty share. Exploration works will commence soon.
The Deputy Chief Minister further added that Singareni was also venturing into thermal power, solar power, and green energy sectors. Under “Singareni Green Energy Limited,” the company is progressing towards establishing solar and pumped storage plants, for which consultants have already been appointed, he added.
“An international agency has been appointed to study opportunities for critical mineral production across the world. Based on its recommendations, Singareni will launch operations abroad under the banner “Singareni Global” Bhatti Vikramarka announced.
