Hyderabad: The Centre has drawn up a comprehensive five-year roadmap for Singareni Collieries Company Limited (SCCL), aimed at sharply reducing production costs while maximising operational efficiency and long-term returns. The strategy focuses on cost rationalisation, expansion through new block acquisitions, diversification initiatives, and structured mine closure planning.A report accessed by TOI highlights one of the key cost concerns: The overburden removal rates at SCCL, which range between ₹180 and ₹230 per cubic metre. This is significantly higher than the ₹150 to ₹200 per cubic metre incurred by Western Coalfields Limited (WCL), underlining the scope for savings. In the immediate phase, the roadmap targets a cost reduction of ₹150–250 per tonne. Proposed measures include tightening contractual rates through rigorous scrutiny of tenders, streamlining initial provisions following detailed internal audits, and strengthening coal quality monitoring systems. Progress will be tracked through quarterly audits, with an expected 5–8% reduction in the cost of production. Over the medium term, the plan envisages a cumulative cost reduction of ₹200-300 per tonne. Key steps include reskilling 5,000-7,000 surplus employees, tendering five-ten underground mines under a mine developer and operator (MDO) revenue-sharing model, preparing comprehensive mine closure plans, and introducing mass production technology in 10 underground mines. Feasibility studies for setting up washeries have also been proposed. Monitoring will be done through biannual reports to the ministry, with a target of achieving a 10-15% cumulative reduction in costs. The roadmap also recommends standardising stripping ratios and automating overburden management, with annual outcome reviews aimed at aligning overall cost of production reductions to 15-20%. In the long run, Singareni is expected to achieve an additional cost reduction of ₹150-250 per tonne while ramping up production to 80-100 million tonnes through new block acquisitions. The plan also proposes converting or closing remaining underground mines by shifting them to MDO or opencast operations. Diversification pilots, with investments estimated at ₹2,000-5,000 crore, are to be rolled out alongside the establishment of four-five washeries across major mining clusters.
