Singareni Achieves Another Milestone in Sustainable Mining
Central Agency Refunds Rs. 40 Crore Escrow Deposit with Interest
Singareni Sets a Benchmark in the Closure of Dorli-2 Mine
Soon Over Rs. 60 Crore More Likely to be Received in Connection with Dorli-1 Mine
HYDERABAD, JUNE 10, 2026: 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. This can be regarded as recognition of the environmentally sustainable initiatives implemented by SCCL under the guidance and direction of the State Government.
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. It also highlights SCCL’s continued emphasis on sustainable mining practices that balance resource extraction with environmental conservation.
What is an Escrow Deposit? When is it Refunded?
Whenever a new coal mine is proposed, the Coal Controller Organisation, an agency under the Ministry of Coal, prescribes various environmental protection measures and mine closure obligations that must be implemented throughout the life of the mine and upon its 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 Closure and Refund of Deposit
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 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 Shri 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. The Singareni management has expressed satisfaction over this development.
Key Environmental and Mine Closure Measures Implemented by SCCL
- Afforestation and Ecological Restoration
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.
- Topsoil Conservation and Reuse
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 Pollution Control Measures
To minimize air pollution during mining operations, SCCL:
- Installed dust collectors on drilling machines.
- Adopted wet drilling practices.
- Deployed one 28-kilolitre water sprinkler and two 10-kilolitre water sprinklers for continuous dust suppression.
- Installed mist sprayers at coal bunkers and CHP facilities.
- Green Belt Development and Environmental Monitoring
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-recognized institution, which confirmed that air pollution remained within prescribed limits.
- Water Pollution Prevention Measures
To prevent contamination of water bodies, SCCL:
- Constructed 10 kilometres of garland drains around the opencast mine.
- Built two check dams to prevent discharge of muddy water into natural streams.
- Established five settling tanks.
- Treated mine discharge water before releasing it into nearby canals.
These measures were also audited and certified by EPTRI.
Safety and Post-Closure Management
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 inspecting these measures and verifying the expenditure incurred, the audit team expressed satisfaction and recommended refund of the escrow deposit to SCCL.
Speaking on the occasion, Director (Projects & Planning) Shri 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.
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