Published Apr 02, 2026 | 4:57 PM ⚊ Updated Apr 02, 2026 | 4:57 PM
Coal mining. Representational Image. (iStock)
Synopsis: Coal production at Telangana’s Singareni Collieries Company Limited (SCCL) has declined over the past two financial years, falling from a peak of 70.02 million tonnes in 2023–24 to about 58 million tonnes in 2025–26. Heavy rainfall and other operational disruptions led to weaker dispatches, while delays in new projects meant overall production remained well below targets.
Coal production at Telangana’s Singareni Collieries Company Limited (SCCL) has registered a clear downturn over the past two financial years, with a marginal decline in FY 2024–25 followed by a much sharper fall in FY 2025–26, according to official data.
After steady growth in preceding years, SCCL’s output peaked at 70.02 million tonnes (MT) in FY 2023–24, slightly exceeding its target of 70 MT.
But the momentum did not sustain. Production slipped to 69.01 MT in FY 2024–25, a decline of 1.45 percent against a higher target of 72 MT, with the company achieving about 96 percent of its goal.
The situation worsened in FY 2025–26, the financial year ending 31 March 2026. Provisional figures show coal production dropped to around 58 MT, an approximate 16 percent decline from the previous year.
Against a target of 72 MT, this equals an achievement level of roughly 81 percent.
Data for the first ten months of FY 2025–26 had already signalled the downturn. SCCL produced 48.93 MT up to January 2026, compared with 53.73 MT in the same period in FY 2024–25, a drop of nearly 9 percent.
Monthly performance reports showed output trailing the previous year, pointing to a sustained slowdown rather than a temporary fluctuation.
Sources said dispatches—the quantity of coal lifted by customers—also weakened. In FY 2024–25, dispatches fell more sharply than production, dropping to 65.23 MT from 69.86 MT in the previous year.
The continued lag in FY 2025–26 shows subdued demand, which in turn shaped production planning as the company cut output to avoid excess stock.
The decline in SCCL’s production is due to a mix of operational disruptions, adverse weather and market factors rather than a single cause.
Heavy and prolonged rainfall was a major factor, particularly in the early months of FY 2025–26.
Unseasonal and extended monsoon conditions between May and July 2025 disrupted open-cast mining operations, which account for most of SCCL’s production.
Waterlogging and logistical constraints disrupted extraction and transport, leading to lower output during key months of the production cycle.
Market conditions also played a key role. A relative increase in SCCL coal prices, along with concerns over quality in some consignments, led several power plants and industrial consumers to shift to alternatives, including coal from Coal India Limited (CIL) and imports.
Reports say some consumers were reluctant to lift lower-grade coal, which added to inventory at SCCL. This forced the company to moderate production, particularly in FY 2024–25, and the trend continued into FY 2025–26.
Delays in commissioning new mining projects and constraints in existing ones limited SCCL’s ability to offset the decline.
Issues in developing new blocks, including the Naini coal block, and difficult geo-mining conditions slowed capacity expansion. Some mines posted strong output, but these gains did not cover the overall shortfall.
The broader industry shows similar pressure. India’s coal production growth stayed largely flat in calendar year 2025, with major producers hit by weather disruptions. In this context, SCCL’s decline mirrors a wider trend, but the impact is sharper due to combined supply and demand constraints.
Despite the dip, SCCL has reported strong performance in some areas, including higher underground output and better productivity in certain open-cast projects. But these gains have not translated into overall growth, as total production remains below both its recent peak and its targets.
