Telangana Directs Singareni Collieries to Expand Into Critical Minerals and Cut Coal Costs

State-owned Singareni Collieries Company (SCCL) has been directed by Telangana Deputy Chief Minister Bhatti Vikramarka to expand its business operations into critical minerals, including lithium, copper, vanadium, and gold. The directive was issued during a meeting with 66 general managers of SCCL, marking a first-of-its-kind initiative by the state government.

The strategic shift is prompted by the growing adoption of alternative energy sources such as solar power, battery storage, and pumped storage projects. The Deputy Chief Minister stated that Singareni must evaluate the implications of these alternative sources on thermal power generation and future coal demand, necessitating a diversification of operations beyond traditional coal mining.

Alongside expansion into new minerals, the state government has stressed the importance of controlling production costs to maintain market competitiveness. Officials were warned that consumers would naturally favor suppliers offering coal at lower prices, and a loss of market share could threaten the company's future and the livelihoods of its workforce. SCCL currently supports approximately 42,000 permanent employees and between 34,000 and 36,000 contract and outsourced workers, making its long-term viability a primary concern for the state.

To facilitate the transition into new sectors, the government suggested leveraging SCCL's more than a century of mining experience by engaging international consultants and conducting detailed feasibility studies before making new investments. Additionally, the state is examining options to develop new mines and has raised the issue with the Union Coal Ministry of allowing Singareni to utilize coal blocks previously allocated to it, rather than subjecting them to the auction process.

During the review, the Deputy Chief Minister also called for an evaluation of existing coal supply agreements with power projects, reserve availability, and production capacity. He noted that coal allocations should ideally be secured when power projects are planned, and clarified that Singareni can supply coal strictly in the grades currently available at its mines.

SCCL Chairman and Managing Director Buddha Prakash Jyoti addressed the meeting, affirming that the state-owned enterprise is actively working to establish itself as one of the leading mining companies in the country.

"The diversification strategy mandated for Singareni Collieries reflects a vital adaptation to changing global energy markets. As traditional coal demand faces headwinds from renewable energy adoption, state-backed enterprises must proactively pivot toward critical minerals like lithium and copper to secure their long-term financial viability. However, balancing this capital-intensive expansion with stringent cost control in core operations will be critical to protecting the livelihoods of tens of thousands of workers and maintaining operational competitiveness." — Dr. Shishir Gupta, Founder & CEO, StartupLanes