The Hindu Business Line : Singareni Collieries plans Rs 3,600-cr capex

Hyderabad, Dec. 31 The state-owned Singareni Collieries Company Ltd (SCCL) is planning a capital expenditure of Rs 3,600 crore during the Eleventh Plan up from Rs 1,500 crore in the earlier Plan.

These funds would be pumped into opening up of 27 new mines, including seven underground mines. However, this does not include the investment of Rs 2,400 crore in the proposed 600 MW merchant power plant.

The company is also considering review of coal prices and expects to take a decision on hiking prices. This follows the recent move by Coal India Ltd to hike prices by about 10 per cent, according to Mr S. Narsing Rao, Chairman and Managing Director, SCCL.

Addressing a press conference here on Monday to announce the company’s performance during the first nine months, Mr Rao said that the company registered one of the best years with a record coal production of about 30 million tonnes (mt) in the period against 28.6 mt for corresponding period last year.

Alongside, the company coal dispatch was highest and it managed to dispatch 31.06 mt up to December 2007. Of this, about 71 per cent was dispatched for the power sector.

Last fiscal, the company recorded total turnover of Rs 4,500 crore and during the first nine months it registered a turnover of Rs 3,079 crore. As against a profit target of Rs 32 crore, the first nine months registered profits of Rs 94.86 crore and the company expects to sustain this level and close the year with a profit of Rs 125 crore.

Highlighting some of the company’s achievements, Mr Rao said that SCCL opened a new greenfield mine at Dorli open cast in November, and also stepped up production from the underground mines by about one mt. In addition, coal output from new mines of Bellampalli open cast extension project and Srirampur opencast has reached full capacity, he said.

SCCL is in the process of finalising plans to acquire a unit of SMS Explosives located at Godavarikhani and Munuguru from IBP. This, Mr Rao said would ensure continuous supply of explosives for mining operations.

MULLS MERCHANT PLANT

SCCL is in the process of preparing a detailed project report for a 600-MW power plant in Jaipur mandal of Adilabad district of Andhra Pradesh. This Rs 2,400-crore project would not only meet about 150 MW of power for internal consumption, but also sell to other buyers at market driven cost, Mr Rao explained.

“The details of the project are likely to be finalised by March 2008 and we expect to implement it by 2011. The project would be funded by debt-equity ratio of 80:20. Once all necessary clearances are received, we would be able to achieve financial closure within three months,” he said.

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