History of Singareni Collieries Company Limited (SCCL)
From 1871 to Present · Telangana Coal Mines · Godavari Valley Coalfield
The history of coal mining in Telangana dates back to 1871 when coal was accidentally discovered in the region by native villagers. Subsequently surveyed by Dr. William King of the Geological Survey of India, the discovery led to the name "Singareni" — derived from the village where coal was first found.
The Singareni Collieries Company Limited (SCCL) is the only coal mining company in South India and operates in the Godavari Valley coalfield, which holds over 22,000 million tonnes of coal reserves. From its origins under the Nizam's patronage to its current status as a joint undertaking of the Government of Telangana and the Government of India, SCCL has played a vital role in the industrial development of the region.
Today, SCCL's mining activities are spread over six districts of Telangana: Kumuram Bheem, Mancherial, Peddapalli, Jaya Shankar-Bhoopalpalli, Bhadradri-Kothagudem, and Khammam.
In the year 1871, coal was accidentally discovered in the region by native villagers near the village of Yellandu in Khammam district (formerly part of Hyderabad State). Subsequently, Dr. William King of the Geological Survey of India surveyed the area and confirmed the presence of substantial coal deposits. One of the important coal seams discovered bore his name.
The village where coal was first found was called Singareni, and this name was later given to the collieries. The name "Singareni Colleries" literally means a colliery located at Singareni village. Later, after the Hyderabad State was merged into India, the name of the town was changed to Yellandu. However, the company retained the historic name.
In 1886, M/s. W. C. Watson and J. Stewart were given a monopoly of mining rights in the former Hyderabad State for 99 years. This laid the foundation for organized coal mining in the region.
The Hyderabad (Deccan) Company Limited, incorporated in England, acquired mining rights in 1886 to exploit coal found in the Yellandu area. Commercial mining commenced in 1889 after the company began operations.
A pivotal moment for the coal industry occurred during the ministry of Salar Jung II. In 1888, the railway line from Wadi (on the Bombay-Madras line) was extended further to Dornakal and Yellandu. The sources explicitly identify Yellandu as the "seat of coal mines" and note that this extension opened up communication between the mines and Bezwada (now Vijayawada).
Singareni railway station was also called Yellandu station, one of the oldest railway stations in Telangana. There is a railway line from Singareni village that meets the Manuguru-Dornakal railway at Karepalli junction.
The present company, The Singareni Collieries Company Limited (SCCL), was incorporated on 23 December 1920 under the Hyderabad Companies Act as a public limited company. This was under the patronage of the last Nizam of Hyderabad, Sir Nawab Mir Osman Ali Khan Bahadur.
SCCL acquired all the assets and liabilities of the Hyderabad (Deccan) Co. Ltd. Best & Co. acted as Secretaries and Selling Agents.
The Deception: Abdul Huk Dilair Jung, then the Home Secretary, was closely connected with the company's affairs. While on a mission to England, he persuaded the Government of Hyderabad to purchase shares in the company at a high rate.
The Fraud: It was later discovered that the shares the government bought actually belonged to Abdul Huk himself. He was found guilty of deceiving his own government and making a massive personal profit from the transaction.
International Investigation: The scandal surrounding the concessionaires of mining rights and the Deccan Mining Company created a "great sensation in England". The matter was so serious that the affairs were investigated by a Committee of the British Parliament.
Consequences: The Hyderabad Government suspended Abdul Huk and sent representatives — including Mehdi Ali (Mohasin-ul-Mulk) and Mehdi Hassan (Fateh Nawaz Jung) — to England to assist in the investigation and High Court proceedings to settle the state's affairs with the company.
The State of Hyderabad purchased majority shares of the Company in 1945, making it the first government-managed enterprise in the region. This marked a significant shift from private to government control.
From 1945 to 1949, the Hyderabad Construction Co., Ltd. acted as Managing Agent. In 1949, this function was entrusted to the Industrial Trust Fund by the then Government of Hyderabad.
By the late 19th century, the state had an established Ecclesiastical and Mines Department. Mr. Syed Ali Belgrami, a prominent official who had previously served as Director of Public Instruction and Home Secretary, held the post of Inspector-General of Mines.
Following the reorganization of Indian states in 1956, the controlling interest of the Company devolved to the Government of Andhra Pradesh (which later split into Andhra Pradesh and Telangana). Thus, SCCL became a Government Company under the Companies Act in 1956.
Large-scale expansion of SCCL was undertaken during the initial Five-Year Plans.
In 1960, the Government of India started its participation in the equity of the Company and also started extending loan assistance. Thus, since March 1960, SCCL has been jointly owned by the Government of Andhra Pradesh and the Government of India.
In 1974, the Government of India transferred its share capital to the Coal Mines Authority Limited.
The manner of extending financial assistance for expansion of SCCL by the Government of Andhra Pradesh and the Government of India during the V Plan period was agreed upon in the Four Party Agreement executed on 10 June 1974.
Subsequently, the Government of India decided to control its equity directly in SCCL. Accordingly, an agreement was concluded on 13 December 1977. The parties to the agreement were:
- SCCL
- Government of Andhra Pradesh
- Government of India
- Coal India Limited
These two agreements are popularly called Quadripartite Agreements.
For financial and other assistance during the VI, VII, VIII, IX and X Plan periods, separate agreements were executed between the Government of India, the Government of Andhra Pradesh and SCCL. These agreements were signed on:
- 31 March 1985
- 10 February 1989
- 24 September 1994
- 11 January 2002
- 19 October 2004
- 11 June 2010
These agreements are called Tripartite Agreements.
The studies of the Geological Survey of India attribute as much as 22,016 million tonnes of coal reserves in the Godavari Valley coalfield. The inventory covers up to a depth of 1200 metres and includes reserves proved, indicated as well as inferred.
The coal extracted by SCCL in the Godavari Valley coalfield up to the year 2009-10 was about 929.11 million tonnes.
Mining activities of SCCL are presently spread over six districts of Telangana:
- Kumuram Bheem (formerly part of Adilabad)
- Mancherial
- Peddapalli
- Jaya Shankar-Bhoopalpalli
- Bhadradri-Kothagudem
- Khammam
The company continues to be a major contributor to the economy of Telangana, providing employment to thousands of workers and supplying coal to power plants, cement factories, and other industries across South India.
Singareni railway station, also called Yellandu station, is one of the oldest railway stations in Telangana. However, after the merger of Hyderabad State into India, the station was completely neglected and left out without any development. The name of the town was changed to Yellandu, but the historic railway station still bears the original name, standing as a silent witness to the region's rich coal mining history.
- Dr. William King: Geologist from Geological Survey of India who surveyed and confirmed coal deposits in 1871; one of the important coal seams bears his name.
- W. C. Watson and J. Stewart: Granted monopoly of mining rights in Hyderabad State in 1886 for 99 years.
- Salar Jung II: Minister during whose tenure the railway line was extended to Yellandu in 1888.
- Sir Nawab Mir Osman Ali Khan Bahadur: Last Nizam of Hyderabad; patron of SCCL at the time of its incorporation in 1920.
- Abdul Huk Dilair Jung: Home Secretary involved in the Deccan Mining Company scandal; found guilty of deceiving the government.
- Mehdi Ali (Mohasin-ul-Mulk) and Mehdi Hassan (Fateh Nawaz Jung): Sent to England to assist in investigation of Deccan Mining Company scandal.
- Mr. Syed Ali Belgrami: Inspector-General of Mines in late 19th century; previously Director of Public Instruction and Home Secretary.
- 1886–1920: Hyderabad (Deccan) Company Limited (Private, England-based)
- 1920–1945: SCCL (Public Limited Company under Nizam's patronage)
- 1945–1956: SCCL (Government of Hyderabad — majority shares)
- 1956–1960: SCCL (Government of Andhra Pradesh — controlling interest)
- 1960–1974: SCCL (Joint ownership: Govt. of AP and Govt. of India)
- 1974–1977: SCCL (Govt. of AP and Coal Mines Authority Limited)
- 1977–2014: SCCL (Govt. of AP, Govt. of India, and Coal India Limited — Quadripartite agreements)
- 2014–Present: SCCL (Joint ownership: Govt. of Telangana and Govt. of India)
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