Hyderabad: The Singareni Collieries Company Limited (SCCL) reported coal stocks of 26.51 lakh tonnes at its mines and Coal Handling Plants on June 4. This marked the lowest reserve level in the past decade.
In a statement on Saturday, SCCL said its coal reserves stood at 2.651 million tonnes. The company continued supplying coal to consumers through rail and road networks based on demand.
SCCL said all coal producers follow similar stock management practices. The company usually builds reserves between November and May, when production remains high.
It then uses these stocks to meet the requirements of thermal power stations and other consumers. This helps maintain supplies when production slows due to operational or seasonal factors.
SCCL coal reserves remain below long-term average
SCCL said it had maintained similar stock management practices for years. The company held 70 lakh tonnes of coal in 2015-16 and 74 lakh tonnes in 2016-17.
Between 2014 and 2024, SCCL kept an average stock of about 50 lakh tonnes at mines and Coal Handling Plants.
The company stressed the importance of maintaining adequate reserves during the monsoon. Low stock levels could disrupt coal supplies to thermal power stations.
To support uninterrupted power generation, SCCL aims to maintain at least 30 lakh tonnes of coal. The company said this quantity equals nearly 15 days of thermal power station demand.
This buffer allows SCCL to continue deliveries even during adverse weather conditions.
SCCL coal reserves policy linked to operational planning
SCCL also explained why it requires bidders to obtain a site visit certificate before participating in selected tenders.
The company said the requirement helps bidders understand site conditions, safety rules, work requirements and local operational challenges.
As a result, contractors can submit bids that accurately reflect project conditions and associated risks.
SCCL said the provision promotes fair competition and better project planning. It also supports informed decision-making and efficient execution.
The company clarified that it did not introduce the requirement to restrict competition.
SCCL added that many government and private organisations already use similar site visit requirements.