In a significant development, the Odisha government has approved the handing over of 643 hectares of forest land to Singareni Collieries Company Limited (SCCL), paving the way for coal mining operations in the Naini coal mine. The approval, granted on July 4, marks a crucial step towards operationalizing the mine, which had faced delays due to the pending transfer of forest land despite receiving Stage-II forest clearance in October 2022.
Union Minister of Coal and Mines, G Kishan Reddy, expressed his gratitude to Odisha Chief Minister Mohan Charan Majhi for swiftly resolving the issue. Reddy’s efforts, along with the cooperative federalism approach, played a key role in expediting the process. The Minister emphasized that this development would significantly enhance energy infrastructure in the region and across the country.
The Naini coal block, located in Odisha’s Angul District, has a Peak Rated Capacity (PRC) of 10 Million Tonnes Per Annum (MTPA) and a coal grade of G-10. The block, allocated to SCCL on August 13, 2015, has an estimated 340.78 million tonnes of mineable reserves. The operationalization of this project is expected to generate substantial revenue and profits for SCCL, with projected additional revenues of Rs 3000 crore and profits of Rs 50 crore annually due to the increased production of 10 MTPA.
The increased coal production will also contribute to statutory revenues such as GST, royalty, DMFT contributions, and CSR funds, benefiting both the state and central governments. SCCL, jointly owned by the governments of Telangana and India on a 51:49 equity basis, stands to gain significantly from this development.
A Coal Ministry release highlighted that despite the Environment Ministry’s FC clearance, the Odisha government had delayed the handover, citing the need for a Wildlife Management Plan by the Wildlife Institute. The recent approval has now cleared the path for SCCL to commence coal production in the Naini block, a move that will bolster energy security needs in Telangana and beyond.
President Droupadi Murmu’s scheduled visit to Odisha, coupled with the state’s strategic decisions under CM Mohan Charan Majhi’s leadership, underscores the dynamic governance of the BJP-led Odisha government. The swift resolution of the Naini coal mine issue reflects the administration’s commitment to fostering industrial growth and enhancing socio-economic development in the state.
Union Minister Reddy, in his statement, noted, “The approval for handing over of 643 hectares of forest land to SCCL on July 4, 2024, is a testament to the cooperative federalism approach we have adopted. I thank Odisha Chief Minister Mohan Charan Majhi for his prompt action. This step will further strengthen and secure the energy security needs of Telangana.”
The SCCL is expected to commence production shortly, marking a significant milestone in India’s coal mining sector and contributing to the nation’s energy security and economic growth.
Prasanta Patnaik