India's state-owned miner Singareni Collieries Company Limited (SCCL) has secured the PKOC-2 Dip Side coal block in Telangana's Bhadradri Kothagudem district through the government's auction, Union Coal and Mines Minister G Kishan Reddy said on August 3.

The move is expected to add an estimated 180 million tonnes of coal reserves to the miner. The block is projected to produce 6 million tonnes of G-8-grade coal annually for about 25 years, the minister said. It will also generate more than Rs 43,000 crore ($4.51 billion) in revenue for SCCL and over Rs 10,500 crore for the Telangana government, while creating employment for about 2,000 people.

Reddy noted that the allocation would reinforce the public sector undertaking's long-term resource position, enhance energy security, and bolster industrial development in the state.

He pointed out that the PKOC-2 award follows SCCL's earlier acquisition of the Naini coal block in Odisha and the Tadicherla-2 block. The three blocks are set to add about 860 million tonnes of coal reserves, supporting combined annual output of around 22 million tonnes over an average mine life of 35 years.

These blocks are anticipated to bring in more than Rs 1.95 lakh crore in revenue for SCCL and close to Rs 48,000 crore for the Telangana government, while sustaining livelihood opportunities for about 6,500 people.