Telangana’s state-run miner eyes expansion beyond coal to sustain long-term growth

The Singareni Collieries Company (SCCL), a government-owned coal mining enterprise jointly held by the Telangana and Union governments in a 51:49 ratio, is set to diversify into thermal power, solar energy and critical minerals as part of its long-term growth strategy.

The company has secured an exploration licence for critical mineral blocks in Raichur and Devadurga areas of Karnataka, covering gold and copper, with a 37.7 per cent royalty share. Exploration is expected to commence shortly, with revenues accruing to SCCL through the mine’s lifespan.

Singareni is also preparing to expand into the critical minerals sector globally under a new subsidiary, ‘Singareni Global’, following recommendations from an international study. In the renewable space, the firm is progressing towards setting up solar and pumped storage plants under ‘Singareni Green Energy’.

The company aims to expand coal mining operations while balancing its portfolio with non-coal assets, given that reserves in existing mines are depleting. It has also indicated that participation in future coal auctions will be necessary to secure new blocks and ensure sustainable production.

Industry analysts note that this diversification marks a strategic shift for SCCL, positioning it to capture opportunities in both clean energy and critical minerals while reducing reliance on coal revenues.