Date:06/12/2004 URL: http://www.thehindu.com/2004/12/06/stories/2004120605250400.htm

Andhra Pradesh

Singareni unveils ambitious expansion plan

By Ravi Reddy

GODAVARIKHANI (KARIMNAGAR DT), DEC. 5. The 115-year-old Singareni Collieries Company Limited (SSCL) is planning to take up 25 new projects covering 16 open cast mines and nine underground mines in the next decade at a cost of Rs. 3,835 crores. The profit-making public sector undertaking has decided to take up this expansion programme as 11 underground and six open cast mines will cease operation during 2004-2017 reducing the coal production by 15.30 million tonnes. To make up for this and to meet the increasing demand, the SCCL has decided to commence 25 new projects.

Obstacles abound

The SCCL General Manager, RG - III, B. Ramesh Kumar, told visiting mediapersons on Sunday that though the company was keen on expanding its activity, it was facing certain hurdles. Delay in clearance of mining projects was a major problem as approval from the State and the Centre were mandatory to commission a new project.

He said Environmental Public Hearing (EPH) was a pre-requisite for obtaining Consent of Establishment from the Pollution Control Board. Similarly, environmental and forestry clearance were a must, he pointed out. Delay in sanctions and clearances ranged from three to 10 years, he said.

Mr. Kumar said land acquisition was another major hurdle. The company required more than 8,000 hectares of non-forest land towards Compensatory Afforestation (CA) scheme for launching these projects. But, the SCCL was not in a position to identify CA land suiting the requirements of the Forest department. Litigation in court also caused inordinate delay, he observed.

Track record

He said the company had undergone several lows and highs. The company's accumulated losses touched Rs. 1,219 crores in 1996-97 and it was referred to the BIFR in 1992 and 1996. Militant trade unionism, poor industrial relations and lack of focus on customers also contributed to the company's poor performance.

However, a series of structural reforms between 1997 and 1999 saw it coming out of the red.

Through concerted effort, improved work culture, prudent fiscal management, innovative managerial techniques and streamlining of SCCL operations saw the company staging a comeback.

The company posted profits for the seventh consecutive year in 2003-2004 and wiped off its accumulated losses.