Singareni Collieries Company Limited (SCCL) despatches coal to most of the customers situated in Andhra Pradesh and to some extent in other parts of Southern India. The customers are broadly categorized as Core Sector (Linked Consumers), Non-core Sector (Unlinked Consumers).

Core Sector industries include Power Houses, Captive Power Plants, Major and Mini Cement Plants, Defence, Railways etc.,

Core Sector industries get long term linkage from Standing Linkage Committee (Long Term), Ministry of Coal, Govt. of India. The Addl. Secretary, Ministry of Coal is the Chairman of SLC (LT). This Committee meets once or twice a year and allots linkages to the Core Sector customers after taking into account the availability of coal from the Coal Companies based on future projections, capacity to supply and demand of coal. Standing Linkage Committee (Short term) allocates coal to the Core Sector on quarterly basis. The Addl. Secretary, Ministry of Coal is the Chairman of the SLC (ST). This Committee meets once in every quarter and allots coal to the Power Houses, Captive Power Plants and Major Cements, Steel etc. All other Govt. Undertakings are also treated as Core Sector Industries for the purpose of charging the prices. But coal is being allotted to these industries as per the recommendations of Industries Dept. of the concerned States.

Non-core Sector industries include Paper, Textiles, Ceramics, Refractories, Chemical, , Bricks, Tobacco redrying, Drugs & Pharmaceuticals, etc. There are about 3150 customers on our rolls. SCCL is charging 5% extra to these customers over and above the charges of Core Sector industries.

These consumers approach Industries Dept. for recommendation of coal The General Manager, District Industries Centres/ Commissioner of Industries of the respective State Governments recommends to SCCL for allotment of coal. On the basis of the recommendation from the Industries Dept., SCCL allots coal to these industries. On receipt of the recommendation letter, the customer approaches Sales Dept. of SCCL, Hyderabad every month, as per the quantity allotted, by paying the necessary amount by way of a Demand Draft to obtain Delivery Order.

SCCL issues Delivery Orders to each customer through computerised system. The customer deposits the Delivery Order at the respective Coal Branch in the Areas and the Coal Branch allots coal to the consumers on daily schedule. The customer has to arrange his own transport for taking delivery of coal and the responsibility of SCCL ceases once the truck leaves the premises of SCCL.

80% of SCCL coal is being fed to Power Houses and about 12% goes to Cement Sector.

SCCL has introduced Dual Pricing Policy for the first time w.e.f.15.3.1997. As per this Policy, Non-core Sector Industries will be charged 20% extra over and above the rate charged for Core Sector Industries. Later this difference has been reduced to 5%.

SCCL normally keeps very less ground stocks.

Power houses normally receive ‘E’,’F’ and ‘G’ grades coal and the Cement sector requires higher grades like ‘B’ and ‘C’.

There were frequent complaints about the quality of coal supplied and short receipt of coal from the consumers. In order to satisfy the customers and to ensure that the quality and quantity of coal delivered to the customers is proper, SCCL had entered into Fuel Supply Agreements (FSAs) with some of the major consumers. Customers are expressing their satisfaction for the coal supplies made under FSA with joint sampling protocol.