In a bid to cater to the fuel needs of new power plants, state-owned SCCL has expedited the development of certain coal mining projects, including Kalyani Khani-6 Incline block, and invited expression of interest for carrying out pre-mining activities.
Kalyani Khani-6 Incline in Telangana, having extractable reserves of 15.65 million tonnes (MT), is a new underground coal mining project and carved out of Mandamarri shaft block in Mancherial district of Telangana.
"SCCL invites expression of interest for carrying out pre-mining activities, development and extraction of coal seams by introducing 3 nos continuous miner technology equipments in a phased manner by outsourcing model in KK6 Incline, Mandamarri area," the Singareni Collieries Co Ltd (SCCL) said on its website.
To overcome the power deficit, Telangana government has embarked on an action plan for capacity addition of around 6,000 MW.
SCCL is also constructing a power plant of 1,800 MW capacity in Srirampur area in Telangana. Further, NTPC also has the mandate as per the Andhra Pradesh Reorganisation Act to set up a 4,000 MW power plant in Telangana.
"With the addition of new power plants, there will be an additional demand of SCCL to the extent of 40 MT of coal over and above the existing supplies.
"Therefore, SCCL, being a state-owned public sector company, has the responsibility to cater to the needs of the new power plants coming up in the State. Considering the likely expansion of existing power projects and construction of new power units, the production and demand gap will further increase," SCCL said.
In view of this, the company has undertaken certain fast track opencast and underground projects to increase production.
"This Project (Kalyani Khani-6 Incline) is one among them. This proposed UG mine will reduce the gap to the extent of its rated capacity of 0.80 MTPA (million tonnes per annum)," the PSU said.
Currently, SCCL has signed fuel supply agreements with power utilities for supply of 27.71 MTPA.
Apart from power utilities, coal is being supplied to cement, captive power plants, steel and other consumers through fuel supply agreements (FSAs) and has also signed fuel pacts for 20.15 MTPA.
Further, SCCL is supplying coal to small and medium scale sector units to the extent of 3 MTPA.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)