Telangana Deputy CM Mallu Bhatti Vikramarka

Singareni Collieries Company (SCCL) needs to acquire new coal blocks to sustain production, expand operations and protect employment, as mine closures, competition and the failure to secure additional blocks have contributed to a decline in profits, Telangana Deputy Chief Minister Mallu Bhatti Vikramarka said.

Addressing a press conference along with IT Minister D Sridhar Babu here on Tuesday, he attributed the decline to several factors, including the closure of existing mines, the `failure’ to secure additional coal blocks during the previous BRS regime and competition in the coal market.

With around 14 blocks having closed, acquiring new blocks had become essential to sustaining production and securing the company’s long-term future, he said.

Tadicherla-II, Koyagudem Block-III, the Manuguru PK Open Cast-II dip-side block and Naini were among the coal blocks being pursued to expand Singareni’s operations, he said. 

The government was also examining the need to rationalise coal prices in line with market conditions, as Singareni faced competition from Coal India subsidiaries and private suppliers offering coal at lower rates.

On the outstanding dues owed to Singareni by electricity utilities, Bhatti said the accumulated amount had reached around ₹29,000 crore over the previous decade.

The government was taking steps to ensure the gradual payment of dues owed by the Telangana State Power Generation Corporation (GENCO) and the Transmission Corporation of Telangana (TRANSCO) in phases, he said.

He also announced a `Dasara bonanza’ for employees, with each permanent employee set to receive an average profit-sharing amount of ₹1,53,912 and contract workers getting a bonus of ₹5,500 each and  38,737 permanent employees and 29,717 contract workers would benefit from the payments.

The government has decided to distribute 34 percent of Singareni’s profits among its workforce. Of the ₹1,754 crore net profit reported by the company this year, ₹596 crore would be distributed among employees as their profit share, he said.

Published on October 13, 2026