Hyderabad, Oct 2026 : The Telangana government on Tuesday announced a profit-sharing bonus of Rs 596 crore for employees of state-owned Singareni Collieries Company Limited (SCCL) ahead of Dasara, with permanent workers set to receive an average of Rs 1,53,912 each and contract employees to get Rs 5,500.
Deputy Chief Minister Mallu Bhatti Vikramarka, who also holds the Finance and Energy portfolios, announced that 34 per cent of the company's annual profits would be distributed among its workforce as a festive gift. The decision will benefit 38,737 permanent employees and 29,717 contract workers.
Explaining the calculation, Bhatti Vikramarka said Singareni had recorded a net profit of Rs 1,754 crore during the year, of which Rs 596 crore would be distributed among employees. The government has continued the practice of allocating 34 per cent of the company's profits to workers.
The bonus amount is lower than last year's payout. In the previous year, employees received Rs 819 crore as a profit-sharing bonus, with each permanent employee getting Rs 1,95,610. Singareni had reported a profit of Rs 6,394 crore in 2024-25.
Deputy CM cites coal block shortage for profit decline
Bhatti Vikramarka attributed the decline in Singareni's profits to several factors, including the shortage of new coal blocks, the closure of existing mines and increasing competition in the coal market.
He criticised the previous Bharat Rashtra Samithi (BRS) government, alleging that it had failed to secure additional coal blocks during its decade in power. According to the Deputy Chief Minister, Singareni was unable to participate in coal block auctions conducted by the Centre, restricting opportunities for business expansion.
He said the failure to take advantage of the opportunity to bid for approximately 141 coal blocks had affected the company's growth prospects. The closure of nearly 14 existing blocks had also affected production and revenue, underlining the need to secure fresh mining assets.
The Deputy Chief Minister said the Congress government had initiated steps to acquire new coal blocks after assuming office and was working to expand Singareni's operations. He stressed that securing additional reserves was important for strengthening the company's long-term business prospects and addressing the challenges arising from the closure of existing mines.
Competition puts pressure on Singareni coal prices
The Deputy Chief Minister also highlighted the increasingly competitive nature of the coal market, noting that Singareni was facing competition from public-sector coal producers, including Mahanadi Coalfields, Coal India and Western Coalfields, as well as private companies offering coal at lower prices.
He said the comparatively high price of Singareni coal had prompted some consumers to consider purchasing supplies from alternative sources. This could affect the company's customer base and further reduce its revenue if the issue was not addressed.
Bhatti Vikramarka emphasised the need to rationalise coal prices in line with prevailing market conditions to ensure that Singareni remained competitive and retained its buyers.
He indicated that pricing decisions would be important for protecting the company's market position at a time when consumers had multiple sources from which to procure coal. Maintaining competitiveness, he said, was necessary to support revenue generation and the company's future financial performance.
The government is seeking to strengthen Singareni through the acquisition of new coal blocks while addressing commercial pressures in the sector. The company's ability to secure additional mining areas and compete on pricing will be important factors in its efforts to improve production and profitability.
Pending dependent employment orders in 15 days
In a separate announcement, Bhatti Vikramarka said the government would issue pending dependent employment orders within the next 15 days, offering relief to families awaiting appointments under the scheme.
He said instructions had been issued to complete the processing of approximately 250 to 300 pending cases, along with the necessary legal formalities, within the stipulated period.
Eligible candidates will receive their appointment orders once the required procedures are completed, he said.
The announcement is expected to provide clarity to families whose applications have remained pending and who have been awaiting employment under Singareni's dependent employment arrangements.
With the Dasara profit-sharing bonus, the Telangana government has announced financial assistance for nearly 68,500 permanent and contract workers associated with the state-owned coal company. At the same time, the government has highlighted plans to address operational challenges through the acquisition of new coal blocks, market-aligned pricing and the clearance of pending employment cases.
The immediate focus remains on ensuring that employees receive their announced festive payments while efforts continue to strengthen Singareni's mining operations and financial position.
