Singareni Secures PKOC-2 Coal Block as Reserve Estimates Reach 860 Million Tonnes
The allocation of the PKOC-2 Dipside Coal Block to Singareni Collieries Company Limited marks a major expansion of energy reserves in Telangana. This project alone will contribute an estimated 180 million tonnes to the company's total coal inventory.
Key takeaways
- SCCL has been allocated the PKOC-2 Dipside Coal Block near Manuguru after a successful auction process.
- The new mine holds 180 million tonnes of G-8 grade coal and is expected to produce 6 million tonnes annually for 25 years.
- Combined with Naini and Tadicherla-2, SCCL's total reserves have expanded to 860 million tonnes, securing 35 years of production.
- The PKOC-2 project alone will generate 2,000 jobs and provide ₹10,500 crore in statutory payments to the Telangana government.
Strategic Expansion Near Manuguru
Singareni Collieries Company Limited (SCCL) has successfully secured the PKOC-2 (Prakasam Khani Opencast) Dipside Coal Block following the completion of an auction on Monday. Located near Manuguru in the Bhadradri Kothagudem district, the site represents a major addition to the company's operational footprint. Union Minister for Coal and Mines G. Kishan Reddy confirmed the allocation, noting that the project satisfies a persistent demand from the company's workforce and trade union leadership.
Fiscal Impact and Production Capacity
The PKOC-2 site contains approximately 180 million tonnes of extractable coal reserves. Projections indicate an annual output of six million tonnes over a 25-year operational lifespan. Economic forecasts for the block include:
- Expected revenue generation of over ₹43,000 crore for SCCL through the extraction of high-quality G-8 grade coal.
- State government collections exceeding ₹10,500 crore via statutory levies and payments.
- The creation of nearly 2,000 new jobs for the local workforce.
Long-term Sustainability and Regional Development
Minister Kishan Reddy framed the acquisition alongside the recent allocations of the Naini block in Odisha and the Tadicherla-2 block. Together, these three assets provide SCCL with a cumulative reserve of 860 million tonnes. This portfolio is engineered to sustain a yearly production average of 22 million tonnes for roughly 35 years. Total anticipated revenue from these combined projects is set to surpass ₹1.95 lakh crore, with the Telangana state government projected to receive more than ₹48,000 crore in associated fees. Across all three sites, the expansion is expected to support 6,500 livelihoods, reinforcing the financial stability of the mining enterprise and its employees.
Source: The Hindu — National
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