Singareni Collieries averse to pvt role

Workers from the private sector, and possibly from overseas, will soon take their maiden steps in the Singareni coalfields, which have so far been exclusively reserved for exploitation by the government.

The Andhra Pradesh Power Generation Corporation (APGenco) has opted for the global bidding route for the development of its captive coal block in the area, a move which has upset the incumbent operator Singareni Collieries Company Ltd (SCCL), jointly owned by the Andhra and central government.

The worry in the SCCL quarters is that a private player chosen through competitive bidding globally will establish a parallel model in mine development within the Singareni Coalfields in terms of performance, cost of production and other parameters, which may lead to 'unfavourable' comparisons in future.

Besides, SCCL feels betrayed since it has actively lobbied with the coal ministry to ensure the allotment of Tadicherla captive coal block to the state power utility.

SCCL has chosen to retain the option of participating in the global bidding while turning down APGenco's offer to become consultant for the project.

APGenco is now scouting for a consultant to work out the project details and expects to be in a position to invite global bids in the next 2-3 months, according to officials.

It wants to ensure "the lowest price for the development of the mine" in the coal block in question "" Tadicherla "" which is estimated to hold 50 million tonne of coal, officials informed.

The block was allotted to APGenco last year.

SCCL is not totally raw in the bidding game, having bid for the development of a captive coal block allotted to NTPC earlier. Captive blocks are alloted to power, steel and cement companies. So far, only five captive blocks have started production.