Kishan Reddy flags ‘urgent need’ for reforms in SCCL, seeks tripartite review

The Centre is considering the formation of a special committee to oversee the tender process for coal blocks of the Singareni Collieries Company Limited (SCCL), in light of recent allegations, as the matter concerns the company’s future and the livelihood of thousands of families dependent on it, said Union Coal and Mines Minister G. Kishan Reddy.

“There is an urgent need to curb illegal activities in SCCL. This is not merely a political issue involving ministers, parties or governments. The Coal Secretary will write to the Chief Secretary of Telangana for a detailed discussion on the tender processes. A tripartite agreement is also necessary. The Centre is ready to take on the responsibility of running Singareni profitably if the State Government hands it over,” he said at a press conference in New Delhi on Wednesday.

The Minister claimed that he has been introducing systemic reforms, conducting regular review meetings, and raising critical questions in his department. However, issues repeatedly brought up by the Centre’s representatives on the SCCL board were not being addressed, he noted.

Although SCCL is a profit-making company, it became entangled in financial difficulties after the formation of Telangana. He alleged that dues owed to SCCL by the State Government have risen from ₹32,000 crore to ₹47,000 crore, claiming that both the previous BRS government and the current Congress government have been ‘exploiting’ the firm.

With a 51% stake, the TG holds administrative control, while the Centre, holding 49%, has no direct authority but is represented by three directors out of ten on the board. Due to the State Government’s alleged failures, SCCL is now borrowing from banks just to pay salaries, he said.

Comparing coal prices, the Minister said that the same grade of coal from Coal India costs ₹1,605 per tonne, nearly two-and-a-half times cheaper than SCCL’s price. “But SCCL has no option except to raise prices in order to survive,” he stated.

Mr. Reddy added that TGGENCO, which buys coal from SCCL, is also a government entity, resulting in continuous price increases even though SCCL’s coal quality averages 58%, compared to 86% at Coal India. As a result, SCCL is compromising on quality and pricing, with customers gradually distancing themselves.

The Minister further alleged that during the BRS regime, the “writ of KCR’s family prevailed” in awarding contracts, and claimed that the present Congress government is following the same pattern. Making the site visit clause compulsory in tenders has opened doors for irregularities, even though similar tender processes in many Central PSUs are implemented in a transparent manner, he said and .demanded to know when TG intends to clear SCCL’s dues.