Telangana-based public sector undertaking, Singareni Collieries Company Limited (SCCL), is expanding beyond coal to explore gold and copper reserves in Karnataka.
The move comes in a year of record profits for the state-owned unit. It also reflects the Telangana government’s intent to strengthen the company and reassure its massive workforce.
Jointly owned by Telangana and the Centre in a 51:49 ratio, the SCCL has coal reserves stretching 350 km across the Pranahita–Godavari Valley, holding 8,791 million tonnes. The company currently runs 17 opencast and 22 underground mines in six districts.
SCCL to reclaim blocks
“Under the previous Bharat Rashtra Samithi (BRS) regime, we lost coal blocks worth ₹60,000 crore because the state failed to bid in auctions. We are reclaiming what is rightfully ours,” the deputy chief minister Bhatti Vikramarka said. He added that Telangana has already written to the Centre to reallocate the lost blocks.
Telangana now plans to actively participate in upcoming coal mine auctions. A block in Odisha has already been secured. Officials believe these efforts could create thousands of jobs and boost local economies in coal belt districts such as Khammam, Bhupalpally, and Mancherial.
SCCL’s diversification push is equally significant. In August 2025, it became the first coal PSU in India to win exploration licences for gold and copper in Raichur and Devadurga districts of Karnataka. Surveys and drilling will begin soon.
As per tender rules, future operators will share 35 percent of mine revenue with SCCL. This will make the company a long-term stakeholder in downstream mineral value chains.
Diversification plans
Officials said that while coal would remain SCCL’s core, the expansion into critical minerals like copper — vital for renewables and electronics — aligns with India’s self-reliance goals. The company is also eyeing lithium and rare earths to power electric vehicles and green energy.
Alongside mineral exploration, SCCL is planning hybrid energy projects, including solar power on its vast land banks.
Strong financial base supports this expansion. In FY 2024-25, SCCL posted a net profit of ₹6,394 crore.
The company rewarded employees with a record bonus of ₹1.95 lakh each for 41,000 permanent workers. The contract workers will be given ₹5,500 each. An amount of ₹819 crore from the company’s ₹2,360 crore net profit has been set aside for this purpose.
SCCL generated these profits by streamlining and exploiting the higher global coal demand. They also provided the cushion for bold diversification.
To guide this shift, the Telangana government has roped in PricewaterhouseCoopers and KPMG. The consultancies will help streamline tenders, study new mining blocks, and chart a 10-year roadmap.
“We are protecting our soul — Singareni — and evolving it into a global player,” Bhatti said. “With expert advice, we will mitigate risks, maximise returns, and secure growth for both miners and the state.”
Mining contributes over 10 percent to Telangana’s GSDP and employs lakhs directly and indirectly. Reclaiming coal assets lost during 2014–2023, when auctions were skipped under BRS rule, is seen as central to the revival plan.
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