SCCL gets Rs 40 cr refund for successful mine closure, eco-stewardship

SCCL has received a Rs. 40 crore refund from the Coal Controller Organisation for the successful environmental closure of its Dorli-2 Opencast Mine in Telangana, demonstrating its commitment to land reclamation and sustainable mining practices.

The Singareni Collieries Company Limited (SCCL) has once again demonstrated its commitment not only to efficient coal mining operations but also to environmental stewardship after mine closure. In recognition of the successful closure of the Dorli-2 Opencast Mine in Bellampalli Area in accordance with the guidelines prescribed by the Ministry of Coal, Government of India, the Coal Controller Organisation (CCO) has refunded approximately Rs. 40 crore, including interest, that had been deposited at the commencement of the project, according to the release.

As per the release, SCCL meticulously implemented all components of the Mine Closure Plan, including environmental protection measures, land reclamation, rehabilitation activities, and other statutory requirements from the beginning of mining operations until mine closure. Consequently, the Coal Controller Organisation, under the Ministry of Coal, has released the deposited amount along with accrued interest.

The refund is being viewed as a recognition of SCCL's commitment to environmental sustainability, transparency, and faithful implementation of all commitments made under the approved Mine Closure Plan.

The Escrow Fund Mechanism for Mine Closure

To ensure compliance, the mining company is required to estimate the expenditure involved in implementing these measures and deposit the corresponding amount as an escrow fund. An agreement is executed among the Coal Controller Organisation, the mining company, and the concerned bank, under which the amount is deposited. Upon completion of the mine's life, if the company successfully implements all environmental and mine closure commitments as per the approved plan, the escrow deposit is refunded along with interest.

Dorli-2 Mine: A Case Study in Successful Closure

SCCL obtained approvals for the Dorli-2 Opencast Mine in Bellampalli Area during 2013-14. As required under the regulations, the company deposited an estimated amount of Rs. 26.79 crore with the State Bank of India in the name of the Coal Controller Organisation towards the implementation of environmental and mine closure activities.

After producing coal for seven years, the mine was closed during 2023-24. Throughout the project period, SCCL implemented the committed environmental and rehabilitation measures in a phased manner.

To verify whether all commitments had been fulfilled, a third-party audit was conducted in July 2024 by the Indian Institute of Engineering Science and Technology (IIEST), Shibpur, West Bengal. The audit confirmed that all mine closure obligations had been satisfactorily completed and that SCCL had fully complied with the prescribed norms.

Based on the audit findings, Deputy Assistant Coal Controller Akash Shiva Hare, in a recent communication, informed SCCL that the deposited amount, along with accrued interest, would be refunded. Out of the total refundable amount of approximately Rs. 40 crore, 90%, amounting to Rs. 36.63 crore, is being released immediately. The remaining 10% will be released after examination of provisions related to Just Transition measures. Thus, nearly Rs. 40 crore is expected to be credited back to SCCL.

Comprehensive Environmental Restoration Efforts

Land Reclamation and Reforestation

The Singareni management has expressed satisfaction over this development. SCCL developed dense forest cover over an area of 162.517 hectares in the mined-out region, effectively restoring green cover comparable to the dense forest that existed before mining operations. Before excavation commenced, approximately 19.76 lakh cubic metres of fertile topsoil were carefully removed and stored separately. This topsoil was later spread over overburden dumps and used for plantation activities, resulting in the development of dense vegetation over the Dorli overburden dumps.

Air and Water Pollution Control

To minimise air pollution during mining operations, SCCL has implemented several proactive measures, including the installation of dust collectors on drilling machines and the adoption of wet drilling practices. For continuous dust suppression, the company deployed a fleet of water sprinklers consisting of one 28-kilolitre and two 10-kilolitre units. Additionally, mist sprayers were installed at coal bunkers and Coal Handling Plant (CHP) facilities to further control airborne particles and ensure cleaner operations. Extensive plantations were raised along both sides of haul roads, creating substantial green belts. Environmental audits were conducted by the Environmental Protection Training and Research Institute (EPTRI), Hyderabad, a government-recognised institution, which confirmed that air pollution remained within prescribed limits.

To prevent the contamination of water bodies, SCCL has implemented a robust environmental management system, including the construction of 10 kilometres of garland drains around its opencast mines and the establishment of five settling tanks. To further protect natural ecosystems, the company built two check dams to block the discharge of muddy water into streams and ensure all mine water is thoroughly treated before being released into nearby canals. These comprehensive measures have been officially audited and certified by EPTRI.

Post-Closure Safety Measures

Following mine closure, SCCL implemented comprehensive safety measures at the site. Security personnel and supervisors were deployed, fencing was erected around the mine area, and structures created during mining operations were dismantled safely and systematically. After reviewing these measures and confirming the expenditures, the audit team was satisfied and recommended refunding the escrow deposit to SCCL.

SCCL's Commitment and Future Outlook

Speaking on the occasion, Director (Projects & Planning) K. Venkateswarlu stated that the refund of the escrow deposit is a testimony to SCCL's sincere and responsible approach towards mine closure activities. He recalled that in the past, a similar refund of approximately Rs. 4 crore had been received for a closed underground mine(RK-8, Srirampur Area) after successful completion of mine closure obligations.

He further stated that, in accordance with the directives of the State Government, SCCL is implementing similarly robust environmental protection and sustainability measures in several other mines that are currently in the closure stage.

He further stated that closure-related works at several other mines have also been completed, and SCCL expects to receive escrow deposit refunds pertaining to those mines in the near future. He stated that the inspections relating to the Dorli-1 Mine are also in the final stages, and accordingly, there is a possibility of SCCL receiving a refund of escrow deposits exceeding Rs. 60 crore in respect of that mine as well. (ANI)

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