The Singareni Collieries Company Limited (SCCL) is the oldest Public Sector Undertaking in mining industry in the country and is the only coal-mining organisation in South India catering to the needs of power sector, cement and other coal based industries in the southern states. It operates 61 underground and 12 opencast mines located in Adilabad, Karimnagar, Warangal and Khammam districts employing 1,08,000. The investment through equity, by Govt. A. P and Govt India is in the ratio of 51.49

From the perspective of energy security of the country,  the SCCL occupies a vital position in  the  coal production programme of the county producing 10% of country's annual coal production with only 7% of India's coal reserves. Though the company produces presently 280 lakh tonnes, due to exhaustion of coal reserves in the present operation mines, the annual coal production by the year 2020 would come down to 130 lakh tonnes. The coal demand on the , SCCL, assessed upto 12^th five year plan, is 340 lakh tonnes. In view of depleting coal reserves in present operation, the company has ambitious plan of the meet the demand and the following would be steps taken.

Starting of new projects to yield on output of 31 LT in 2001--02 57 LT. In 2006-07, 131 LT. In 2011-12 and 227 LT. In 2016-17.

To produce coal to stand in competition with domestic and imported coal.

To generate basic exploration data on regional scale and identify potential coal blocks for detailed exploration.

In view of the SCCL's need to stand in global competition, though there would be reduction in direct employment in SCCL, No. of employment opportunities would get diverted due to mechanization and modernization of the mines. The maintenance and repairs of equipment machines, holding of non core activities, over burden removal maintenance of town ships, canteen service, health and sanitation, education etc would generate employment to a great extent in the coal mining towns.

By gradually taking over, by the sate, of social obligations presently management by SCCL, like education, health, sanitation, power supply to the town ships, security etc., SCCL would divert its welfare amenities towards reaching of information to the workmen and their families providing holiday homes, providing accommodation when they got for outside medical treatment etc. SCCL also would invest any capital needs by establishing ":Sramika Vidyalaya", Ramagundam / Bellampalli where there would be surplus manpower and there is need to retain the workmen. This center would also help in vocational training for workmen children, land losers etc.

Massive education programmes through Electronic medial would be under taken to bring awareness amongst its employees about strengths and weakness of the company. Similarly awareness would also be brought in the people in coal mining town about the social helmets like alcoholism, gambling, aids etc. Training and education programmes would focus, in addition to the vocational needs, need for education, small savings etc. The internet facilities would be utilised to improve the techniques and methods of mining. This facility would be made available in all departments of the country.

The distribution of power in coal mining towns presently under taken by SCCL would gradually be given back to AP TRANSCO or its proposed distributory companies.

For tenders value of under 5 lakhs, limited enquiries from proven suppliers, and in case of proprietary items, from original equipment manufacturers would be made.

In case of Global enquiries in addition to open advertisements, an abridged version of enquiry would be sent to Embassies of relevant countries. Further a web site would be commissioned to put these enquiries.

A minimum of three offers would be insisted unless there is a justifiable reason having specific approval.

Chief Vigilance commission's guidelines of not negotiating except with L1 tender that to when their prices are unreasonably high would be implemented.

Purchase preference would be given to APHMEL, Govt undertakings, SSI units. State based industries & non state based SSI units.

To improve credibility, system of interest of deemed payments would be introduced

An independent contract management cell would be started to ensure smooth awarding and implementation of mining contracts.

Safe drinking water to habitations and Sanitation policy:

The SCCL would gradually hand over town ship management including water supply schemes to the state.

Being a commercial organisation, the SCCL would continue encouraging and funding sports and sports competitions for their employees.

A Software development group would be formulated to modernise and computerise the equipment maintenance and monitoring of equipment utilisation, performance of employees, office automation etc. The data would be made available in these areas to develop effective decision making models.

While production from the existing projects would be at a level of 303 LT, the year 2006-07, the new projects to be formulated would yield 13 LT. 31 LT, 41, LT, $LT, 57 LT and 64 LT respectively in the years from 2000-01 to 2006-07.

Improve the man productivity from the level of 1.09 tonnes of coal output per man shift (OMS) in 1997-98

Improve the performance of opencast excavating machinery i.e. shovels from a level of 34% utilisation in the Scheduled Shift hours in the year 1997-98 to 40% in 2001-02

Achieve an additional output of 3 lakh tonnes in underground mines and 8 lakh tonnes in opencast by 2001-02 and 5 LT and 8 LT respectively by 2006-07

Rationalise the manpower from the level of 1,12,000 in 1997-987 to 106000 in 2001-02

About 200 Lakh tonnes of coal is programmed to be proved by exploration drilling of 5 to 6 lakh meters.

The Coal reserves of SCCL are geologically of poor quality and small mining blocks. The company has limited financially viable reserves amenable for opencast mining due to very severe stripping ratios and poor grades of quality. The underground blocks have adverse geo-mining conditions such as steep-ness , in-seem clay bands, incompetent roof etc. for adopting large scale mechanisation.

All the new coal blocks are under forest cover, procedure for acquiring forest land is not only tedious, but also time taking.

Adverse law and order situation due to extremist activities in all the four districts of SCCL operations.

Unlike their counter parts in western economies, the social costs like education, housing health and sanitation etc, are managed by the company.

Similarly non-core activities like overburden removal, canteens shops and offices cleaning workshop functions are run departmentally by SCCL

Exodus if skilled and trained supervisors seeking better opportunities in view of likely private capital induction in coal and power industry.

Procurement of HEMM to be stopped for the new mines and replacement in operating mines. Long-term basis off-loading of OB removal facilitating the operators to not only reach greater depths but also encourages competition. Similarly, non-core activities also would be off-loaded. Till Contract Labour (R&A) Act is amended, off-loading of Overburden removal by hiring of machines to continue at the rate of 60% of total requirement.

Risk / Profit sharing concepts for the new projects with equipment suppliers to be tried.

Sinking shafts to reach deep seated coal reserves in new areas and introduce mechanisation at the coal-face to reduce the human drudgery in old mines based on viability.

Using high-resolution seismic survey and remote sensing technologies in coal exploration.

VRS and retraining for surplus manpower.

To offset increase in wages cost by improving productivity.

Reconstruction of underground mines with Opencast technology to the extent financially feasible.

As recommended by the Committee on Integrated Policy of the Planning Commission, to give responsibility of identification of compensatory land to State Govt. who are better to deal with the problem. The mining company while applying for acquisition of forest land should make necessary cash deposit with the State Government who will identify the compensatory forest land and arrange hand over of such land to forest department. The applicant on the other hand should be immediately given permission, after it makes the deposit, to carry on with his part of activities.

Amendment to the Contract Labour (Regulation Abolition) Act activities of earth work excavation, coal loading and other non-core activities.

Exploring possibility of Government function separating from those of administering the coal mining companies, without need to approve projects undertaken by the coal companies using their own funds or commercial loans and without a need to examine or approve project proposals, or to issue any index of gains or losses. (This is done in China).

Gradual taking over of social obligations lke education, health, and sanitation, power supply to the town ships etc.