The government today approved the revised cost estimate of Singareni Collieries Company's (SCCL) project, which will supply dry-fuel to power major NTPC for its Ramagundam project.
"The Cabinet gave approval to second revised cost estimate of Adriyala shaft project of SCCL. Coal production from this project will meet demand of the NTPC ramagudam," a source said.
As per SCCL, the Rs 780 crore underground project was initially sanctioned in 2006 to produce 2.8 million tonne (MT) per annum.
Adirayala Shaft Project is located in Karimnagar district of Andhra Pradesh.
Earlier, the Cabinet in 2006 gave approval to the project "for a coal production capacity of 2.144 million tonnes per year and net capital requirement of Rs.212.34 crores and for a total outlay of Rs.452.30 crores."
The Cabinet had also given it flexibility in the implementation stage within the approved cost estimates to respond to improvements in technology and equipments which would result in improved profitability and productivity parameters.
