No Proposal to Privatise Underground Mines: Singareni Management Issues Clarification
HYDERABAD, SEPTEMBER 02, 2026: The Singareni management has clarified that the reports claiming that Singareni’s underground coal mines are being privatised are completely false and baseless. It stated that there is currently no proposal under consideration by the company to privatise Singareni’s underground mines.
As a responsible public sector undertaking with extensive experience in the mining sector, Singareni is currently producing coal through 21 underground mines and 17 opencast mines. The company stated that it has been continuously contributing to the country’s energy security and industrial development by supplying coal to Telangana as well as Tamil Nadu, Andhra Pradesh, Karnataka, Maharashtra and other states.
Underground Mines Being Continued Despite Losses
The management stated that although Singareni’s underground mines are operating at a financial loss, they are being continued while making every effort to minimise losses, keeping in view employment generation and job security in the Telangana region.
Instead of closing or privatising the underground mines, the company is taking necessary measures to increase their production capacity and reduce operating costs, intending to make as many mines as possible financially viable.
EOI for Shanthikhani Mine Was Only for a Pilot Study
The management explained that a proposal was formulated purely as a pilot project to study whether production costs and losses at the heavily loss-making Shanthikhani underground mine could be reduced by carrying out production operations under the MDO (Mine Developer and Operator) model.
As part of this exercise, an EOI (Expression of Interest) was issued on January 2 this year, inviting proposals from interested companies. Initially, the deadline was fixed as January 15, but no company expressed interest. The deadline was subsequently extended to January 22, following which only one company came forward. However, at a later stage, that company too expressed its unwillingness to continue with the process. As the proposal did not receive an adequate response, the Singareni management clarified that it was withdrawn.
The management stated that it is factually incorrect to claim that Singareni is privatising its underground mines based on the EOI issued in connection with the Shanthikhani mine. It reiterated that the EOI process relating to the Shanthikhani mine has already been withdrawn.
The Singareni management stated that its primary objective is to operate underground mines more efficiently, reduce losses and make as many mines as possible financially viable, thereby protecting employment opportunities in the Telangana region while also creating more employment opportunities in the future.
The management further stated that publication of such reports without verifying the facts could create unnecessary concern and anxiety among employees, their families and the general public.
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