Indian Coal Miner, SCCL to Diversify into Thermal Power Generation

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Researched by Industrial Info Resources (Sugar Land, Texas)--India's government-owned coal-mining company Singareni Collieries Company Limited (SCCL) (Hyderabad) is planning to diversify into the thermal power generation business, leveraging its experience in giving consultancy to coal-based power projects in the country.

SCCL will be taking up projects to construct coal pithead-based power-generating plants, either through joint ventures or on its own, depending on access to virgin coal blocks that could be developed as a captive source of coal for the power plant. To mark a beginning, the company is considering construction of a 1,200-megawatt (MW) power project in the Adilabad district, in the state of Andhra Pradesh.

"SCCL has entered into several agreements to offer consultancy to power-generating companies in the technical support and operation of coal blocks," company officials said. "These competencies will be extended to diversify into our own thermal power generation projects."

SCCL has signed a memorandum of understanding in August 2010 with the Andhra Pradesh Power Generating Company (APGENCO) (Hyderabad), the country's third-largest power utility, to develop and operate coal blocks allocated to it by the Indian government. Another agreement has been signed with GMR Energy Limited (BSE:532754) (Bangalore) to provide technical and financial credentials for qualification to bid for coal blocks, which will be put up for auction by the Indian government. SCCL also will be collaborating with Andhra Pradesh Power Corporation (Hyderadad) through a joint venture to undertake coal mining, beneficiation, and the processing and operation of coal.

SCCL, the oldest Indian coal-mining company, operates 13 open-cast and 42 underground mines in the Godavari River Valley, in southern India, to produce 51 million tons per year of coal. The Godavari River Valley basin is estimated to have an 8.79 billion-ton coal reserve, along a single stretch of 350 kilometers.

To pursue other diversification projects, SCCL has entered into an agreement with Carbon Energy Incorporated (Milton, Queensland, Australia) to collaborate in technologies for surface coal gasification, coal-bed methane and underground coal-gasification projects.

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