SCCL Earns Centre’s Recognition for Sustainable Mining; Receives Rs 40 Crore Escrow Refund

Hyderabad: The Singareni Collieries Company Limited (SCCL) has achieved another milestone in sustainable mining, receiving nearly Rs 40 crore, including interest, from the Coal Controller Organisation (CCO) following the successful closure of the Dorli-2 Opencast Mine in Bellampalli Area.

The refund, approved by the Ministry of Coal’s Coal Controller Organisation, acknowledges SCCL’s adherence to environmental standards and successful implementation of all commitments outlined in the approved Mine Closure Plan. The company had originally deposited Rs 26.79 crore as an escrow fund at the start of the project to ensure compliance with environmental protection and mine closure obligations.

According to SCCL, the Dorli-2 mine operated for seven years before being closed during 2023-24. Throughout the life of the project, the company implemented extensive environmental conservation, land reclamation, rehabilitation and pollution-control measures in accordance with statutory requirements.

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 fulfilled all mine closure obligations and complied with prescribed environmental norms. Based on the audit findings, the Coal Controller Organisation approved the refund of the escrow deposit along with accrued interest.

Of the total refundable amount, approximately Rs 36.63 crore, representing 90 per cent of the amount, is being released immediately, while the remaining 10 per cent will be released after examination of provisions related to Just Transition measures.

As part of its mine closure activities, SCCL restored 162.517 hectares of mined land through afforestation, conserved and reused nearly 19.76 lakh cubic metres of topsoil, established extensive green belts, implemented advanced dust-suppression systems, and constructed drainage and water-treatment infrastructure to prevent environmental pollution.

The company also undertook comprehensive post-closure safety measures, including site security, fencing and safe dismantling of mining-related structures.

SCCL Director (Projects & Planning) K. Venkateswarlu said the refund reflects the company’s responsible approach towards mine closure and environmental management. He noted that SCCL had earlier received a similar refund for the closure of the RK-8 underground mine in Srirampur Area.

He further stated that inspections related to the Dorli-1 Mine are in the final stages and SCCL expects to receive an additional escrow refund exceeding Rs 60 crore in the near future.

The development is being viewed as a significant endorsement of SCCL’s commitment to balancing coal production with environmental sustainability and responsible mine closure practices.

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