The Singareni Collieries Company has firmed up capital expenditure of Rs 3,000 crore and set a coal production target of 67.5 million tonne for 2020-21.
The board of the company has also agreed to enter into a memorandum of understanding (MoU) with the government of Telangana for extracting 67.5 million tonne of coal in FY21.
While approving various proposals, including expansion and capital expenditure, the board gave its consent for the purchase of advanced equipment such as sprinkler tankers, cranes, and related mining equipment.
The company has more than doubled its sales in the past five years from Rs 11,928 crore in 2013-14 to close to Rs 25,828 crore in 2018-19, registering a growth of 116.5 percent.
During Q1-Q3/FY20, the company achieved coal production of about 53 million tonne against the targeted 554 tonne and FY20 target of 66 million tonne.
The company plans to step up coal production in the existing and new mines within the state and begin work on the coal blocks in other states, including Naini block in the state of Odisha.
Singareni Collieries Company has also approached the Coal Ministry for allocation of coal blocks in Jharkhand, Madhya Pradesh and Chhattisgarh.