Union Minister Kishan Reddy announces new coal sales mechanism

Union Minister for Coal and Mines, G Kishan Reddy, announced the introduction of a coal exchange to allow consumers to procure coal of their preferred grade. He emphasised the need for government coal companies, including SCCL, to maintain strict quality standards and reduce production costs to remain competitive.

Peddapalli: Union Minister for Coal and Mines, G Kishan Reddy informed that a new coal sale mechanism through the proposed coal exchange is being introduced to enable consumers across the country to procure coal in their preferred grade from a supplier of their choice.

In this competitive framework, maintaining coal quality will be essential for coal companies to sustain their market presence. So, all government coal companies must strive to remain competitive in the market by adhering to strict quality standards.

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He further advised all companies to take necessary measures to reduce production costs in order to protect and expand their market share. Singareni Collieries Company Limited (SCCL) should also focus on reducing production costs and improving coal quality to strengthen its position in the competitive market, the Union minister advised while conducting a nationwide review of coal companies through a video conference from New Delhi on Tuesday.

Reviewing the performance of SCCL, the Minister advised the company to focus on supplying quality coal at competitive prices and to achieve the targets set for new mining projects. Participating in the review from Singareni Bhavan, Hyderabad, SCCL Chairman and Managing Director, Dr Buddhaprakash Jyoti presented the company’s future plans through a PowerPoint presentation.

He informed that efforts were underway to secure necessary approvals for the commencement of five new opencast projects during the year. These include JK OC at Yellandu, Manuguru Opencast Extension, Ramagundam OC-1 Phase-III, Goleti OC, and RK Opencast Project.

These projects require forest and environmental clearances. Additionally, approvals for non-forest land are required for seven other projects.

He stated that SCCL was taking measures to supply higher-quality coal to consumers and was increasing dispatches to avoid stock accumulation during the summer season.

He also highlighted that, due to the non-availability of Compensatory Afforestation (CA) land, CPSU status is required for SCCL to facilitate the early grounding of new mining projects.