Reserve Godavari Valley Coal Blocks to Singareni: Telangana Deputy CM

Hyderabad: The Government of India should allocate coal blocks in the Godavari catchment areas to Singareni under the reservation quota. This will allow Singareni to extract the remaining 1,422 million tonne coal of Godavari valley coalfields, said Telangana deputy chief minister Mallu Bhatti Vikramarka.

Sharing the dias with union minister of coal and mines G Kishan Reddy at the launch of the tenth tranche of coal auctions, he urged the union minister to take up the coal block allocation issue with the Prime Minister. “We are ready to approach the Prime Minister collectively with representatives from all parties. We urge you to do justice to Telangana and Singareni as a son of this region,” he said.

There is a gap of 20 million tonne between the coal produced by Singareni and the demand. The upcoming 4,000 MW Yadadri Power Plant, the 4,000 MW NTPC plant in Ramagundam, and another 800 MW plant being constructed by Singareni will all require about 24 million tonnes. It is essential to allocate new mines to Singareni to meet this demand, he said.

The deputy chief minister pointed out that due to the amendment to the MMDR Act in 2015, Singareni, which had complete authority over coal reserves in this region, lost its lease rights and now has to acquire blocks. Singareni was granted 44 mining leases covering 600 square kilometres in the Godavari-Pranahita valley area, with permission to extract 3,008 million tonnes of coal from 388 square kilometres. However, only half of this, about 1,585 million tonnes, has been extracted so far, leaving 1,422 million tonnes yet to be mined, he said.

Singareni earlier requested the coal ministry to allocate Sattupalli Block-3, Koyagudem Block-3, Shravanapalli Block, and PK OC dip side blocks under this Section. Surveys have already been completed for these blocks, which are adjacent to old mines with available infrastructure such as CHP facilities, roads, and offices. Allocating these blocks would enable immediate coal production without much cost or effort. Unfortunately, these four blocks were auctioned. These allocations should be cancelled and they should be given to Singareni,” he said.

“Singareni currently operates 39 coal mines. However, without new mine allocations, the existing mines will gradually deplete. In the next five years, eight underground mines and three open-cast mines will close, and in another five years by 2032, five more underground mines and six open-cast mines will shut down. By 2037-38, another five mines will close. If this trend continues, Singareni, which employs 40,000 workers, will reduce to eight mines and 8,000 workers within 15 years, potentially leading to its closure. As ministers and leaders from Telangana, we cannot imagine or wish for such an outcome,” said Vikramarka.