The Singareni Collieries Company Limited [Kothagudem, Khammam]


INTRODUTION:
A remarkable little adventure gave birth to the giant corporate entity that is today Singareni Collieries way back, on a dark night in 1870, pilgrims on their way to the Badrachalam temple (Near Singareni Village) had lit a fire to prepare their meal.  One of supporting stones of their makeshift stove caught fire.  The incident was immediately reported to the local Government.  This led to an extensive survey by Dr. William King, an eminent geologist, which confirmed the revolutionary discovery of mammoth deposits of coal in the Godavari valley.
            The Singareni coal reserves stretchers over 350 Kms., of Pranahita Godavari valley of Andhra Pradesh, covering the districts of Khammam, Adilabad, Karimnagar and Warangal, with a proven deposit aggregating to a whopping 7,944 million tones, of which only as little as 1,034 million tones has been consumed till date, rough estimates indicate that the natural reserves outlets a century.
            In the year 1886 witnessed the formation of Hyderabad Deccan Company Private Limited.  The first commercial operation commenced at Yellandu (Khamman District) in Andhra Pradesh in 1889.  In 1921 the company was re-christened as “The Singareni Collieries Company Limited”.  And its scrip listed on the London stock exchange.  It was the reign of H.E.H. Mir Osman Alikhan, the most affluent of the Asaf Johi Dynasty in Deccan India.  He purchased the shares of SCCL, in 1945, with this SCCL became the first ever government managed coal company in India.  In the year 1949, SCCL, went into the control of the state.  Today M/s Singareni Collieries Company Limited (SCCL) is a public sector company under the control of Andhra Pradesh State Government (51% share capital) and Government of India (49% shares capital).  It is a coal producing company in South India and supplies coal to power sector, cement sector and other coal based industries in Andhra Pradesh, Karnataka, Tamil Nadu and Kerala



VISION STATEMENT
 
·        To empower, enable and enrich partners, business and associates.

·        To be the chosen vehicle of growth for stakeholders and a source of inspiration for the society.
  
BUSINESS PHILOSOPHY:
Values:
·        Employee Empowerment for commitment to total quality;
·        Team efforts and increased productivity;
·        Ethical management practices for Esteem & credibility.         

GUIDING PRINCIPLES:

  • To retain our strategic role of a premier coal producing company in the country and excel in a competitive business environment.
  • To strive for self-reliance to optimum utilization of existing resources and earn adequate returns on capital employed.
  • To exploit the available mining blocks with maximum conservation and utmost safety by adopting suitable technologies and practices and constantly upgrading them against international benchmarks.
  • To supply reliable and qualitative coal in adequate quantities and strive to satisfy customers needs by constantly sharing their experience and customizing our product.
  • To emerge as a model employer and maintain harmonious industrial relations within the legal and social framework of the state.


PRE-REFORMS IN SCCL
POST-REFORMS IN SCCL
1.      Industrial unrest through multiplicity of trade unions.
2.      Poor quality of life for workers.

3.      Low Literacy & awareness among workforce.

4.      Inefficient & high cost of men sizing.



5.      Management inaccessible to Labour force at large.

6.  Huge interest payment.


7. Little customer care (or) quality consciousness.

8.  Lack of clear corporate blue print for growth.
9. Twice recommended to BIFR (Board of Industrial Finance and Reconstruction)

o   Unifying trade unions through path breaking elections.
o   Focused multifaced workers welfare Programme.
o   A high pich communication drive harnessing media launching literacy programs.
o   Establishing outsourcing of non core & ancillary activities though public, private partnership by this company saved adopts Rs.1610 crores.
o   Innovative programmes launched like dial your GM, Field visits interactions.
o   Follow-ups used innovative financial instruments like debt sweps
o   Fuel supply agreements technology infusion for quality testing workforce access to client sites.
o   Focus on safety environment.

o   Reeping the fruits of maximum profit
STEPS TO CURB PROBLEMS
            To recover from the threat of problem cricis.  The SCCL., went along with  a dramatic changes to enjoy the fruits of success, the various measures undertaken by the management to have set back are discussed below.

CHANGE IN LEADERSHIP:
            Under the effective management of Chandra Babu Naidu Ex-CM of Andhra Pradesh State Government took initiation of incorporating a humorous reforms by bringing changes in the top management of SCCL, Two IAS officers with proven track record were appointed as Chairman & Managing Director personal welfare and administration in June, 1997.  Another IAS Officer with similar track record brought on deputation to the company from Indian Railways as Director (Finance), Two other Directors (Technical & Planning) made substantial contribution in the technical aspects along with C & MD.  They had effective communications with the officers in the middle & line management regarding needs of organization and made a world of difference in SCCL.

TRANSPARENCY IN ADMINISTRATION:
            C & MD had started addressing letters to individuals workers on every occasion careering the importance & future of coal industry, financial position of the company.  There mission & the necessary of cost consciousness.

CUSTOMERS OF SCCL:
            Singareni Collieries has several strategic advantages ranging from huge coal reserves to client proximity being the only coal producing company in South India.
            It serves about 3500 major, medium & small scale industries which includes diverse industries such a thermal power plants, cement, steel, paper, textile, tobacco, ceramics, pharmaceuticals, distilleries etc.,
            Power sector consumes 78% of SCCL’s coal production, 13% is consumed by cement plants and balance 9% is consumed by 3400 small and medium scale industries.

PRESENT PERFORMANCE:
            The Singareni Collieries Company Limited created an all time record by producing 57.37 million tones of coal in 2004-05 against the target of 75 million tones.  The record was achieved after mines in Manuguru and Ramagundam 3 produced coal beyond the target.  The mines in nine other areas did not achieve the prescribed targets.  The mines in Kothagudem area achieved 99% of the production target while those in Ramagundam clocked only 71% places such as Mandamarri, SRirampur, Yellandu, Ramagundam-1, Bhupalpelly and Bellampally achieved 90% of the targeted production.  The open cast mines of the targeted produced 70% of the coal and the underground mines produced only 30% of coal.  The company has been making profiles for the last 6 years and it is expecting a profits of 800 crores in 2006-07, the following tables shows the performance of SCCL.

PERFORMANCE OF SCCL
Particulars
2005-06
2006-07
Production
(in million tones)
37.00
35.30
Dispatches
37.94
38.71
Sales (In Crores)
3,760.65
4,107.00
Productivity (output per man shift in tones)
1.77
1.92
Capacity Utilization
90.00
93.17
Net Profit before fal (in crores)
704.00
804.00
Net worth in crores
2218.00
2412.14

STRATEGIES ADOPTED BY MANAGEMENT:
COST-CUTTING MEASURES:
·        Rationalization was undertaken by the company through introduction of schemes like U. R. S., outsourcing.
·        By Reducing play day’s and Overtime allowance which inturti saves 33 crores in 3 years interest 15 to 12.5% per annum.
·        Higher interest bearing central loans (17 & 16%) discharged by pledging 13% bonds for 11.75% interest loans.  Through such carefully planned debt., swaps the company saved Rs.82 crores in a four year period.

TECHNOLOGY UP GRADATION:
            With the up gradation of technology SCCL., producer 72% of its output from 13 open cost mines and 55 underground mines all for 48% of production.
WELFARE ACTIVITIES:
            SCCL., recognize workmen as state holders in the companies progress and an important corporate philosophy of the company.  The average expenses spent on each employee welfare is >300 crores.
LITERACY DRIVE:
            A scheme called ”Telugu in 7 days” was launched as a literacy mission to enable the mines to read the notices, newspapers and his pay slips.
            As a part of this program the voluntary organization called SWAP, education amenities.

TRADE UNIONS ELECTIONS – A MILESTONE IN SCCL:
            A 21 days strike in June, 1988 gave birth to a new reform of helding elections to minimize the number of registered trade unions from 67 to 1 in 1988 for the first time in the coal industry in India elections were held under search ballet system to elect one recognized union at company level and one representative union at the area level (total eleven areas) total 5 unions have representative status in all areas and also at corporate level they are:

TRADE UNIONS IN SCCL:

  • The Singareni Coal Mines Labour Union.
  • The Singareni Collieries Workers Union.
  • The Godavari Loya Boggu Gani Kaarmika Sangham.
  • The Singareni Collieries Employee Union.
  • The Signareni Coal Mines Labour Union.

Such successful conducting of elections had worked a good bye to the entire culture of illegal strikes and threat of evidence.

SAFETY MEASURES:
            The Company has taken a proactive role to put the safety record in its mines at the top.  It gave birth to a slogan “Safety First, Safety Always, Safety Forever”.

MILE STONES OF TECHNOLOGY INTRODUCTION:

1948:         Introduction of machine mining (shuttle car)
1951:         Electric Coal Drills
1953:         Electric Cal Lamps
1954:         Frame Proof Mining Machinery
1975:         Open Cast Mining.
1979:         Side Dumps Loaders (SDLs)
1981:         Loads haul dumpers
1983:         Merchandised Long Wall.
1986:         Introduction of computers and walking dragline in Open cast mines.
1989:         French Blasting Gallery Technology
1994:         Input Crushing & conveying technology in Open Cast Mining.
2002:         Surface Miner Technology.

MINING SUCCESS AND HONORS:

SCCL’S Multi faceted achievements are landmarks that stand testimony to its efficacy. The company has deservedly won many awards prominent them are:
2001-02:
·        Best management award in the state
·        National safety award
·        Best payroll saving award in the state.

2003-04:
  • Best workers welfare activity award from FAPCCI.
2005-06:
  • Golden peacock environment management award from world environment management foundation.
  • Coal India award for fly ash utilization from ministry of Env. & forests, power, science, & technology.
  • Golden peacock innovation management award from world environment management foundation.
The operation areas of SCCL are as follows:
KHAMMAM DISTRICT – Kothagudem, yellandu and Manuguru
ADILABAD DISTRICT - Bellampalli, Mandamarri, and Srirampur
KARIMNAGAR DISTRICT – Ramagundam – I. II, III
WARANGAL DISTRICT - Bhoopalpally.
The coal reserves stretch over 350 square kms. Of pranahita Godavari valley of above districts of Andhra Pradesh with proven deposits of 8,575 million tones of coal.
SCCL now operates forty two (42) under ground mines and thirteen (13) open cast mines in these four districts.


INSTITUTES OF KOTHAGUDEM REGION
            Kothagudem is one of the work place of Singareni.  It is a part of Khamma district area operating in 5 mines i.e., 8 incline, 8-a incline, 9 incline, 10 incline, 10-a incline and having operations at 5 offices, GM Office.
ð   U.M.T.I.
ð   N.I.M.
ð   M.V.T.C.
ð   Stores.
ð   Work-shop.
            G.M. Office premises comprise different ways ad I.E.D., E.D.P., Survey, Finance, Personal and H.R. Department.
M.V.T.C – Mining Vocational Training Centre:
            Is one among the prestigious wings of SCCL.,   It engages training program’s to the newly employed and refresher courses for existing employees.  It aims at importing theoretical knowledge along with mission, vision and goals of the organization.
STORES:
The deals with the supply of materials for production points to desired destination.  It also inspects the quality of coal.  Stores opted for a Inter Store Transfer note (IST).  To have a transfer of data from one store to another regarding coal.

WORK SHOP:
            It deals with the repairs of all the spares belonging to various mines.  It has 6 departments dealing with different areas of functioning.
·        Electrical Indoor
·        Electrical Outdoor
·        Fabrication Selection
·        Machine Shaft
·        Pumping
·        Machine Mining

I E D : INDUSTRIAL ENGINEERING DEPARTMENT:
            It has a leading role in the picture of SCCL.  It deals with the two major components i.e., Industrial Relations and Engineering.  These 2 plays vital role regarding manpower assessment, material norms.

·        Work Study
·        Wage Incentive Plan
·        Management Information System
·        Special Assignments
·        Job Evaluation & Wages Administration
·        Merit Rating
·        Operations Research
·        Decision Analysis

E. D. P.  : ELECTRONIC DATA PROCESSING UNIT:
            This unit in SCCL took its birth 1985, it is the department which has an access to each and every department by its “Intranet” with the help of networking systems.  It keeps a tract of all functional areas.

            SCCL is the first coal company to implement on-line management for stores.  It also deals with the payroll, A/c’s application, details of personal, no mails per employee. 

UMTI : UNDER MINING TRAINING INSTITUTE:
            Is an effort mode by the organization to train its employees in operating machineries.  It makes them acquainted with the equipment provided at the work place UMTI not only tries to import its trainees.  About functioning of equipment but also about its conceptual knowledge and maintenance of the machinery.


COMPUTERIZATION IN SCCL:
  • SCCL has initiated computerization activity in the early eighties utilizing outside faculties and installation of in-house computer in the corporate office in 1986 since then number of systems is developed such as pay roll, stores. Accounting Management Information System, Personnel, Personnel data (EPR), inventory Management etc.
  • Computerization has been introduced in the supply and allotment of coal to the industries in the non-crore sector by the marketing Department. All documentation of data pertaining to over 2000 industrial consumers has been totally computerized.
  • The marketing department has been issuing computerized sale notes to all the industrial consumers. Daily a computerized statement indicates the sale notes issued to consumers and the requests pending at the each day is displayed on the Notice Board of the Marketing Department.
  • Computerized recruitment system by which selection of candidates was completed within 24 hours of written test evolved to remove the subjectivity in the selection process and this was appreciated by the candidates as well as the general public.
CERTIFICATIONS:
Co-ordinate introduction of
Ø  ISO – 9001:2000
Ø   ISO -14001:2004 and
Ø  OHSAS - 18001:1999
ORGANIZATIONAL STRUCTURE:
The successful performance of any institution depends to a large extent upon its organization may be defined as “the process of identifying and grouping of work to be performed defining and delegating responsibility and authority and establishing of relationship for the purpose of enabling people to work most effectively together accomplishing objectives”.
A sound organization structure is a pr-requisite for efficient management; it provides the frame for carrying the activities of the organization and fulfillment of its objectives. If the organization structure will be damaged. SCCL has a good organization set-up which can be followed by other; organization also.

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