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SCCL expedites coal mining projects to meet fuel needs of power plants

Press Trust of India  |  New Delhi 

In a bid to cater to the fuel needs of new power plants, state-owned has expedited the development of certain projects, including Kalyani Khani-6 Incline block, and invited expression of interest for carrying out pre-activities.

Kalyani Khani-6 Incline in Telangana, having extractable reserves of 15.65 million tonnes (MT), is a new underground project and carved out of Mandamarri shaft block in Mancherial district of

"invites expression of interest for carrying out pre-mining activities, development and extraction of seams by introducing 3 nos continuous in a phased manner by outsourcing model in KK6 Incline, Mandamarri area," the (SCCL) said on its website.

After bifurcation of state, has become a power deficit state, the PSU said.

To overcome the power deficit, government has embarked on an action plan for capacity addition of around 6,000 MW.

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 Reorganisation Act to set up a 4,000 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 will reduce the gap to the extent of its rated capacity of 0.80 MTPA (million tonnes per annum)," the PSU said.

SCCL is the only company existing in Southern and supplying coal to the major of TSGENCO, APGENCO, KPCL and MAHAGENCO.

Currently, SCCL has signed fuel supply agreements with for supply of 27.71 MTPA.

Apart from power utilities, coal is being supplied to cement, captive power plants, 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.)

First Published: Sun, May 12 2019. 11:21 IST