1 day ago
Singareni Management Rejects Reports Of Underground Mine Privatisation
Singareni runs underground and opencast coal mines.
Some reports said its underground mines might be privatised.
The company said those reports are completely false.
It said it will keep operating the underground mines, even though some are losing money.
This is partly to protect workers’ jobs.
Singareni wants to increase coal production and lower costs.
An EOI for the Shanthikhani mine was meant to test whether another operating model could reduce losses.
The EOI was later withdrawn because there was not enough interest, though the reports differ on whether one company responded.
The company asked people not to spread unverified information that could worry workers and their families.
Singareni management called reports of underground mine privatisation completely false.
The company operates 21 underground mines and 17 opencast mines despite financial losses.
Management said it will continue underground operations to protect jobs and employment.
The Shanthikhani EOI was described as a pilot study of the Mine Developer and Operator model.
The EOI was withdrawn after insufficient interest, although accounts differ on whether one company responded.
- Who
- Singareni Collieries Company Limited management and employees affected by the reports.
- What
- Management denied that Singareni’s underground coal mines are being privatised.
- Where
- Singareni’s operations in Telangana, including the Shanthikhani mine in Mandamarri, Mancherial district.
- When
- The clarification was issued on Wednesday; the Shanthikhani EOI was issued on January 2, 2026, with deadlines initially set for January 15 and later extended to January 22.
- Why
- Management said it is continuing underground mining to protect employment while increasing production, reducing costs and improving financial viability.
Singareni Management’s Position
Privatisation Reports And Concerns
Whether privatisation is planned
Singareni Management’s Position
Management says reports that Singareni’s underground mines are being privatised are completely false and that no such proposal is under consideration.
Privatisation Reports And Concerns
The reports alleged that the company’s underground mining operations were being privatised, prompting concerns about their future and about employment.
Meaning of the Shanthikhani EOI
Singareni Management’s Position
Management says the EOI was only a pilot study to determine whether the Mine Developer and Operator model could reduce production costs and losses, not a privatisation step.
Privatisation Reports And Concerns
The EOI was interpreted in the reports as evidence that the Shanthikhani underground mine, and potentially other underground mines, could be moved toward privatisation.
Future of underground mining
Singareni Management’s Position
Singareni says it will continue operating underground mines, improve efficiency, protect existing jobs and potentially create additional employment.
Privatisation Reports And Concerns
Employees and the public remain concerned about what financial losses and possible changes to operating arrangements could mean for underground mining and job security.
Key facts
- Underground mines
- 21
- Opencast mines
- 17
- Company position
- There is no proposal under consideration to privatise the underground mines.
- Shanthikhani EOI
- Management described it as a pilot exercise to assess the Mine Developer and Operator model’s potential to reduce costs and losses.
- EOI status
- The process was withdrawn after insufficient interest.
- Response discrepancy
- One account says no company responded; another says one company responded but later declined to proceed.
- Coal supply
- Singareni supplies Telangana, Tamil Nadu, Andhra Pradesh, Karnataka, Maharashtra and other states.
Quotes
Singareni management
The management of Singareni, the coal mining company, which issued the clarification
“It is factually incorrect to claim that Singareni is privatising its underground mines based on the EOI issued in connection with the Shanthikhani mine”
thehansindia.com
thehansindia.com
Sources
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