Singareni Collieries Company (SCCL) has reportedly initiated a unique business model to exploit its unviable coal mines by inviting both Indian and foreign investors to take up projects on a coal-sharing formula.

SCCL has identified six mines - Javaharkhani and Koyyalagudem in Khammam, Kakatiyakhani in Warangal and Chennur (I and II) and Ramakrishnapur in Adialabad district (Andhra Pradesh) - for contract mining.

As part of the new model, the company is likely to invite private investors to take up these projects and make them viable using new technology and equipment. SCCL is expected to facilitate the process and, in return, get a portion of the coal mined at pre-determined prices. Each mine may require an investment of about Rs 600 crore. SCCL is expecting the guidelines for giving the mines on contract to be ready by December 2010.

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