The Hindu Business Line : Nitro glycerine-based explosive ban hits Singareni Collieries

THE naxal attack on the life of the Telugu Desam Party President and former Chief Minister of Andhra Pradesh, Mr N. Chandrababu Naidu, at Tirupati on October 1, 2003 strangely had its repercussions on the State-owned Singareni Collieries Company Ltd (SCCL).

Following the attack, the Union Home Ministry banned the use of nitro glycerine-based explosive substance from April 1, 2004. SCCL uses this substance in the application of the blasting gallery technology of France for excavation of coal from three of its mines at Godavarikhani and one mine at Kothagudem in Andhra Pradesh.

As there was no alternative technology available, SCCL officials said, the company had to stop operation of the four mines, which account for a production of 1-lakh tonnes per month. The 115-year-old SCCL had to incur a production loss of 1.2 million tonnes of coal, worth about Rs 10.2 crore, per annum.

The company's repeated representations to the Centre to allow it use the explosive substance till an alternative technology was developed were of no avail.

The SCCL Chairman and Managing Director, Mr R.H. Khwaja, told newspersons here on Friday that the Central Mining Research Institute (CMRI), Dhanbad, was currently engaged in the development of alternative technology, which would take more than a couple of years.

The ban had hit SCCL the most as 40 per cent of its production was from underground mines unlike Coal India Ltd, which produces 85 per cent of its coal from open cast mines.

The production loss could be significant in the light of the increasing gap in the supply and demand for coal. For instance, SCCL was hopeful of achieving a production of 35 million tonnes, the highest since its inception, in the current fiscal as against the demand for 37 million tonnes of coal.

Mr Khwaja said that supply-demand gap with regard to coal would further increase in the coming years with the development of infrastructure, particularly the power sector, in the country. On the other hand, commissioning of new coal mining projects would take 3 to 10 years time as they require various approvals, including environmental and forest clearance, from the State and Central Governments.

Nevertheless, he said, SCCL had obtained environment clearance for operating four new mines at Adriala and Sattupalli in Khammam district and at Khairaguda and Goleti in Adilabad district. On the other hand, SCCL would be closing 11 underground and 6 open cast mines during the next 13 years resulting in a production loss of 15.3 million tonnes. To augment the reduction in production and to meet the increasing demand for coal, the company would commence 25 new projects during 2004-2017 at an estimated cost of Rs 3,835 crore.

SCCL is expecting to post a net profit of Rs 264 crore in the current fiscal as against Rs 145 crore last year.

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