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SCCL earns ₹40-crore refund for successful mine closure at Dorli-2

© Provided by The Rahnuma Daily

SCCL earns ₹40-crore refund for successful mine closure at Dorli-2

Hyderabad, June 10 (RAHNUMA): 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 a recognition of the environmentally sustainable initiatives being implemented by SCCL under the guidance and directions 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.

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.

The 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.

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.

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