SCCL Secures Allocation of PKOC-2 Coal Block in Telangana
Singareni Collieries Company Limited (SCCL) has secured the allocation of the PKOC-2 (Prakasam Khani Opencast) Dipside Coal Block, located near Manuguru in Bhadradri Kothagudem district, following the completion of its auction process. Union Minister for Coal and Mines G. Kishan Reddy welcomed the development, describing it as a vital milestone for the company’s long-term sustainability and financial growth.
What Happened
The auction for the PKOC-2 Dipside Coal Block concluded successfully, paving the way for its allocation to SCCL. Union Minister G. Kishan Reddy stated that the allocation fulfilled a long-standing demand raised by SCCL workers and trade union leaders. This major development follows the recent allocations of the Naini Coal Block in Odisha and the Tadicherla-2 Coal Block to the company.
Key Highlights
- Coal Reserves: The PKOC-2 Dipside Block contains an estimated 180 million tonnes of high-quality G-8 grade coal reserves.
- Production Capacity: The block is projected to yield about six million tonnes of coal annually over a 25-year operational lifespan.
- Revenue Impact: High-quality coal output from the site is expected to yield over ₹43,000 crore in revenue for SCCL.
- State Revenue: The project is estimated to contribute more than ₹10,500 crore to the State government in statutory levies and payments.
- Employment: Opening the mine is anticipated to create employment opportunities for nearly 2,000 people.
- Cumulative Boost: Combined with Naini and Tadicherla-2 blocks, SCCL adds roughly 860 million tonnes of reserves, backing an average annual production of 22 million tonnes for nearly 35 years and over ₹1.95 lakh crore in total revenue.
Why This Matters
This allocation strengthens SCCL’s asset base and long-term production capability while securing high-grade G-8 coal. The operationalization of the project directly addresses demands from local mine workers and unions, while supplying vital financial contributions to both SCCL and the state treasury.
What to Watch Next
Attention now turns to the commencement of operational activities at the PKOC-2 Dipside site to begin meeting annual production targets and establishing local employment infrastructure.
Frequently Asked Questions
Where is the PKOC-2 Dipside block located?
The block is situated near Manuguru in the Bhadradri Kothagudem district of Telangana.
What is the total estimated revenue from the PKOC-2 block?
The project is projected to generate over ₹43,000 crore for SCCL and contribute more than ₹10,500 crore to the State government.
How many jobs will the PKOC-2 block create?
The project is expected to generate employment opportunities for approximately 2,000 people.
Source: Statement issued by Union Minister for Coal and Mines G. Kishan Reddy.