Three coal blocks in quick succession — and South India's only major coal producer just got a lot bigger. Union Coal and Mines Minister G. Kishan Reddy announced on Monday, 3 August 2026 that the auction process for the PKOC-2 (Prakasham Khani Open Cast) Dip Side Block near Manuguru in Bhadradri Kothagudem district, Telangana has been completed, with the block set to be allocated to Singareni Collieries Company Limited (SCCL) — capping a remarkable run of acquisitions for the state-linked mining giant.

The auction that workers had been demanding

Kishan Reddy said that workers, union leaders and SCCL officials had been pressing for the PKOC-2 Dip Side Block to be secured for Singareni ever since the Naini Coal Block in Odisha and the Tadicherla-2 Block were allocated to the company. He described his role as going beyond his ministerial brief — acting, in his words, as 'a son of Telangana' (తెలంగాణ బిడ్డగా) who personally championed the allocation. The auction formality, he confirmed, was completed on 3 August 2026.

What 180 million tonnes means for Manuguru

The numbers behind this single block are striking. The PKOC-2 Dip Side Block holds an estimated 180 million tonnes of coal reserves, classified as high-quality G-8 grade. At a production rate of 6 million tonnes per year, the mine is projected to run for 25 years, generating revenue of over Rs 43,000 crore and delivering more than Rs 10,500 crore to the Telangana state government. Around 2,000 direct jobs are expected to be created in the Manuguru area.

Three blocks, one transformational leap for SCCL

Taken together, the three newly secured blocks — Naini, Tadicherla-2, and PKOC-2 Dip Side — reshape SCCL's long-term outlook in a fundamental way. The combined additions bring 860 million tonnes in reserves to the company. At an average annual output of 22 million tonnes, production is projected to sustain for roughly 35 years. Cumulative revenue across all three blocks is estimated at over Rs 1,95,510 crore, with state government receipts exceeding Rs 48,000 crore. Employment across the three projects is expected to reach 6,500 workers.

SCCL is a joint venture between the Telangana government and the central government, and remains the only significant coal producer in peninsular India. Its expanded block portfolio directly underpins Telangana's energy security — the state's power sector is heavily dependent on SCCL coal — while also strengthening the financial base needed to protect existing worker benefits and job guarantees.

Modi government's coal auction framework at work

The allocation follows the transparent, auction-based process established under the Coal Mines (Special Provisions) Act, 2015, which rebuilt the coal block allocation system after the Supreme Court cancelled earlier allotments in 2014. Kishan Reddy credited the broader policy direction of Prime Minister Narendra Modi's government, calling the acquisition of three blocks a 'auspicious development' (శుభపరిణామం) enabled by central government cooperation. The central push to expand SCCL's portfolio — including blocks outside Telangana in Odisha — is part of a wider effort to raise domestic coal output and reduce import dependence across southern India.

What to watch next: statutory clearances, land acquisition timelines, and when the first tonne of coal actually moves from Manuguru. The numbers are on paper. The clock starts now.