HYDERABAD

The management of Singareni Collieries Company Ltd (SCCL) has maintained that as on May 26, the they have a total coal stock of 2.877 million tonnes at its various mines and coal handling plants (CHPs) - and it is the lowest coal stock recorded during the last 10 years.

In a statement, the public sector coal company stated that the average coal stock held by the company during 2014-24 was 5 million tonnes. Stating that coal production and transportation activities are carried out every day across the 39 opencast and underground mines operated by Singareni, it is quite natural that a certain quantity of coal would remain stocked at mines and CHPs.

The coal available in stock is continuously transported to consumers through rail and road routes as per requirements. Such stock maintenance is a normal logistical phenomenon in coal companies. The management stated that it is clarifying the facts in view of certain misconceptions and concerns being expressed regarding coal stocks in Singareni.

Coal production is generally higher and coal stocks tend to get accumulated particularly during the period from November to May. These stocks are traditionally supplied to thermal power stations through rail and road transport when production declines due to various reasons. The practice has been continuing for years.

The management explained citing records that coal stocks stood at 7 million tonnes in 2015-16 and 7.4 million tonnes in 2016-17. Between 2014 and 2024, the average coal stock maintained at mines and CHPs was around 5 million tonnes.

Maintaining coal stock is especially essential during the monsoon season or else there could be situations where adequate coal supply to thermal power stations would become difficult. Such stock maintenance is natural and at times essential for every coal company in the country, SCCL said in the statement.