Hyderabad: Union Minister G. Kishan Reddy directed public sector coal companies to prioritise quality and remain competitive, stressing the need to reduce costs and improve efficiency.
He made the remarks during a nationwide review of coal companies conducted via video conference from New Delhi on Tuesday.
Coal quality competitiveness stressed in national review
The Minister said India’s push towards energy self-reliance required government coal firms to maintain strict quality standards. He added that companies must adapt to market competition and ensure consistent supply quality.
He highlighted a proposed coal exchange mechanism. This system will allow consumers to procure coal of preferred grades from suppliers of their choice. Therefore, maintaining quality will be critical for sustaining market presence.
Kishan Reddy also advised companies to reduce production costs. He said this step would help protect and expand market share in a competitive environment.
Coal quality competitiveness focus on SCCL operations
Reviewing the performance of Singareni Collieries Company Limited, the Minister urged the company to supply quality coal at competitive prices. He also asked it to meet targets for upcoming mining projects.
From Singareni Bhavan in Hyderabad, Chairman and Managing Director Buddhaprakash Jyoti participated in the review. He presented the company’s future plans through a presentation.
He stated that SCCL was working to secure approvals for five new opencast projects this year. These include JK OC at Yellandu, Manuguru Opencast Extension, Ramagundam OC-1 Phase-III, Goleti OC, and RK Opencast project.
Coal quality competitiveness linked to project approvals
The CMD said these projects required forest and environmental clearances. In addition, seven other projects needed approvals for non-forest land.
He noted that SCCL was taking steps to supply higher-quality coal to consumers. The company was also increasing dispatches to prevent stock accumulation during the summer.
Furthermore, he pointed out that the lack of Compensatory Afforestation land remained a constraint. He said CPSU status would help SCCL fast-track new mining projects.