The Singareni Collieries Company (SCCL) is preparing to participate in the 16th round of commercial coal block auctions conducted by the Union Coal Ministry, focusing on the Sravanapally and Koyagudem blocks in Telangana. The auction is scheduled for December 3, with October 16 set as the deadline for bid submissions.

The ministry has offered 25 blocks across nine coal-bearing states, including Telangana and Odisha. Of these, 21 are fully explored and four are partially explored. The Telangana government has directed SCCL management to participate because the two blocks are considered important for the company’s long-term operations.

Sravanapally is an opencast mine in Nennela mandal of Mancherial district, while Koyagudem OCP-3 is located in Tekulapally mandal of Bhadradri Kothagudem district. The proposed bidding comes as several SCCL mines have exhausted their reserves or been closed. Officials recently informed a review meeting chaired by Chief Minister A. Revanth Reddy that 14 coal blocks under SCCL had already been shut.

The company faces a potential decline in production as additional mines approach the end of their operating lives. Assessments indicate that the closure of four mines by 2027-28 could reduce SCCL’s annual output by 12.51 mn t. Officials have said that securing new blocks is essential to maintain production, protect employment, supply coal to power plants and support economic activity in Telangana’s coal belt.

SCCL is also examining coal blocks in Odisha near the Naini block, which it already controls. Possible options include Nuepatrapora, Nuvagaon Telisahi, Arkhapal Srirampur and Meenakshi Central, although the company has not officially confirmed plans to bid for them. The proposed expansion reflects concerns over fuel availability for Telangana’s thermal power stations and efforts to reduce reliance on supplies procured from outside the state.