Coal blocks identified for privatisation

By Our Special Correspondent

HYDERABAD, SEPT. 12. The Singareni Collieries has identified for privatisation coal blocks at Anisettipalli, Cherla, Penagadapa, Punukul chilka, all in Khammam district, and Tadhicerla in Karimnagar district. There are no proposals to privatise the existing operating mines and projects under implementation, the Collieries said.

The Collieries is operating 55 underground mines and 11 open cast mines. Though it has been earning profits for the past four years, there is an accumulated loss of Rs. 566 crores, and there is no budgetary support for the company this year. Since the company has to generate its own resources to meet capital requirements, it has decided to go in for privatisation. The Coal Mines (Nationalisation Amendment Act 1993) permitted the entry of private companies in coal mining.

The State Government has to issue a `no objection' certificate before privatisation is allowed. Singareni Collieries is a joint sector coal company with 49 per cent shareholding by the Government of India and 51 per cent shareholding by the State Government. The company produced 30 million tonnes of coal last year.

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