Karimnagar: SCCL coal output shrinks by 54% due to Covid-19

Karimnagar: Coal production was the worst hit by the Covid-19 in Singareni Collieries Company Limited (SCCL) as only 27.25 lakh tonnes coal was produced against the target of 50.74 lakh tonnes in April.

The company had fixed a target production of 70.35 million tonnes of coal in 2020-21 financial year. But it seems the SCCL cannot complete its target.

After the implementation of lockdown to contain the spread of coronavirus, the SCCL announced lay off from April 1, thus stopping coal production in about 25 mines.

Coal production is being continued in Adriyal Long Wall project, GDK-11, Shanthikhani, VK-7 and in about 18 open cast mines only.

After two residents of Godavarikhani were declared as corona positive in April, the district officials declared the area as Red Zone.

All the mining workers living under Red Zone had remained under home quarantine for 20 days, thus slowing down coal production. And the result is only 54% of the estimated production, i.e., 27.25 lakh tonnes out of 50.74 lakh tonnes was produced in April.

Meanwhile, demand for coal is also decreased enormously during the lockdown period. As power consumption was drastically decreased due to shutdown of factories and industries along with shopping malls, cinema halls, bars and clubs in the country. Presently, electricity is used only for domestic purpose.

Since electricity consumption is decreased, the companies involved in the production of power business also producing less amounts of power using less quantities of coal, so the demand for coal is decreased.

Even the GENCO and NTPC are producing electricity keeping in view of domestic needs only. Since the business centres are not using the power, the companies also not producing the electricity to their full capacity.

Meanwhile, the SCCL management is preparing an action plan to overcome shortage of coal production from the mines in the coming days.