Singareni sets benchmark in sustainable mine closure

Metro India News | Hyderabad 

The Singareni Collieries Company Limited (SCCL) has achieved a significant milestone in sustainable mining, with the Coal Controller Organisation (CCO) under the Union Ministry of Coal approving the refund of nearly Rs 40 crore, including interest, for the successful closure of the Dorli-2 Opencast Mine in Bellampalli Area.

The refund is being viewed as recognition of SCCL’s commitment to environmental protection, land reclamation, rehabilitation and strict adherence to the Mine Closure Plan approved by the Ministry of Coal. SCCL had deposited Rs 26.79 crore as an escrow fund with the State Bank of India in 2013-14 when the mine project received approval.

After seven years of coal production, the mine was closed during 2023-24. Under coal mining regulations, companies are required to deposit estimated closure costs in an escrow account to ensure implementation of environmental safeguards and mine closure obligations. The amount is refunded with interest only after authorities verify that all commitments have been fulfilled.

A third-party audit conducted in July 2024 by the Indian Institute of Engineering Science and Technology (IIEST), Shibpur, West Bengal, confirmed that SCCL had satisfactorily completed all mine closure activities. Based on the audit findings, the CCO approved the refund. Of the total amount, Rs 36.63 crore, representing 90 per cent, is being released immediately, while the remaining 10 per cent will be released after examination of Just Transition provisions.

As part of the closure plan, SCCL restored 162.517 hectares of mined land through afforestation, conserved and reused 19.76 lakh cubic metres of topsoil, installed dust-control systems, developed green belts and implemented extensive water pollution prevention measures, including 10 km of garland drains, two check dams and five settling tanks. Environmental audits by EPTRI, Hyderabad, certified that air and water quality standards were maintained.

Director (Projects and Planning) K. Venkateswarlu said the refund reflected SCCL’s responsible approach towards mine closure and environmental sustainability. He added that inspections of the Dorli-1 Mine are in the final stages and SCCL is likely to receive an escrow refund exceeding Rs 60 crore for that mine as well.