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The Singareni Collieries Company Ltd has set a coal production target of 67.5 million tonnes and firmed up capital expenditure of ₹3,000 crore for 2020-21.
The board of directors of the State-owned mining company held its 552nd meeting at Singareni Bhavan during the weekend, when its Chairman and Managing Director, N Sridhar, sanctioned ₹3,000 crore of investments for the next financial year.
MoU with State govt
During the meeting, the board agreed to enter into a Memorandum of Understanding with the State government for extracting 675-lakh tonnes (67.5 million tonnes) of coal in the coming financial year. The company is owned by the Central and Telangana State governments.
While approving various proposals, including expansion and capital expenditure, the board gave its consent for the purchase of advanced equipment such as sprinkler tankers, cranes, and related mining equipment.
The meeting was attended by State Special chief secretary Ajay Mishra, Central coal ministry deputy secretary P S L Swamy, Western Coalfields Ltd Chairman Rajeev Ranjan Mishra, among others.
Sales doubled
Singareni Collieries has more than doubled its sales in the past five years from ₹11,928 crore in 2013-14 to close to ₹25,828 crore in 2018-19, registering a growth of 116.5 per cent. Its profit increased nearly four times from ₹419 crore to ₹1,600 crore during the same period.
During the first three quarters, the mining company achieved coal production of about 53 million tonnes against the targeted 554 mt and financial year target of 66 mt. The company, which has been on a growth curve over the past few years, plans to step up coal production in the existing and new mines within the State and begin work on the coal blocks in other States, including Naini block in Odisha.
For the mining company, which seeks to step up its output from about 66 mt this year to 100 mt by 2025, the allocation of Naini block and a new one in Patrapura, are crucial.
Singareni has also approached the Coal Ministry for allocation of coal blocks in Jharkhand, Madhya Pradesh and Chhattisgarh.
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