Centre approved direct allocation of Tadicherla-II coal block to SCCL: Kishan Reddy

Union Minister for Coal and Mines G. Kishan Reddy on Tuesday announced that the Centre had approved the direct allocation of the Tadicherla-II coal block to Singareni Collieries Company Limited (SCCL), bypassing the auction route - in what he described as a long-term measure to strengthen the company and safeguard employment.

Addressing a press conference in New Delhi, Mr. Reddy said he had signed the file for the allocation after securing the necessary approvals. The Tadicherla-II block contains estimated coal reserves of around 182 million tonnes and is expected to produce about six million tonnes annually.

According to the Minister, the mine is likely to remain operational for 40 to 50 years and generate revenues exceeding ₹64,000 crore over its lifespan. He said Prime Minister Narendra Modi approved the allocation after he personally represented SCCL’s case and sought legal opinion on the matter.

Mr. Reddy said the direct allotment would save SCCL nearly ₹2,550 crore that would otherwise have been spent on auction-related payments. The coal available in the block is of Grade-8 quality and would contribute significantly to the company’s future production.

Besides improving SCCL’s profitability, the allocation is expected to benefit Telangana government through royalties and other statutory payments. The State is projected to earn around ₹16,000 crore in revenue from the project, he said.

Calling the decision a major boost for SCCL, the Minister said the new mine would strengthen the company’s financial position and create around 1,200 additional jobs. Issues relating to the Naini coal block had been resolved and that the focus was now on expediting production. The Tadicherla-II and Naini mines are expected to support SCCL at a time when coal output has been declining and financial pressures have been mounting, he pointed out.

The Naini coal block alone has the potential to generate around 1,500 jobs, Mr. Kishan Reddy said, adding that no coal block had been allocated to a public sector undertaking through the direct route since 2020. He thanked the Prime Minister for approving the allocation despite SCCL being under the control of the Telangana government, describing the decision as one taken solely in the company’s interest.