Hyderabad: The Central Government has allocated the Tadicherla-2 open-cast coal block in Telangana’s Jayashankar Bhupalapally district to Singareni Collieries Company Limited (SCCL) on a nomination basis instead of through an auction, Union Minister for Coal and Mines G. Kishan Reddy announced on Wednesday. He said the block contains an estimated 182 million tonnes of coal, enough to support production for the next 40 to 50 years. The project is expected to generate revenue of nearly Rs 64,000 crore for SCCL, while the Telangana government is likely to receive around Rs 16,000 crore through royalties and related earnings.

Kishan Reddy said this is the first time since 2020 that the Centre has allocated a coal block to a government-owned company through nomination after obtaining legal opinion from experts. He explained that the decision was taken under the spirit of cooperative federalism to strengthen SCCL, improve its financial position, and increase coal production at a time when the company is facing rising debt and declining output. The Union Minister also recalled that previous governments in undivided Andhra Pradesh had requested the allocation of the Tadicherla-2 block, but the proposal was never approved.

The minister added that the Tadicherla-2 project is expected to create around 1,200 jobs, while another 1,500 employment opportunities will be generated at the Naini coal block. Telangana Deputy Chief Minister Mallu Bhatti Vikramarka welcomed the Centre’s decision, describing it as a major boost for SCCL and the state’s mining sector. He thanked Prime Minister Narendra Modi and Union Minister Kishan Reddy for approving the allocation. Kishan Reddy also said he would follow up with Union Minister for Housing and Urban Affairs Manohar Lal Khattar regarding Telangana Chief Minister A. Revanth Reddy’s request for the Hyderabad Metro Rail Phase 2 project.