Variation in SCCL OB contracts rate during BRS, Cong. period minimal

HYDERABAD

The variation in successful bid value of the overburden (OB) contracts of Singareni Collieries Company Ltd (SCCL) awarded between April 2025 and October 2025 compared to those given during March 2015 and September 2023 is very minimal.

The average successful excess bid value is 4.07% in case of the five contracts awarded between April 2025 and October 2025 after the Congress party came to power, while it was 4.7% higher than the value/rate estimated by the company, when the BRS was in power.

According to the official sources, the successful excess bid ranged between 0.09% and 35.57% during the 2015-23 period, while it is between 0.07% and 7.95%. The issue of OB contracts has been in the headlines following allegations by BRS, particularly former minister T. Harish Rao, stating that they were being awarded at lower rates against the estimated rate/value.

A company linked to Chief Minister A. Revanth Reddy’s brother-in-law S. Srujan Reddy had won the Venkatesh Khani coal mine contract in October 2022. However, the contract was terminated as the variation between the bid rate was 1.32% lower than the estimated rate. Later, another company linked to Mr. Srujan Reddy was awarded the same contract when it quoted 4.34% excess rate than the estimated rate/value in September 2023.

The official sources said the 4.34% excess was 13.83% more than the latest contract given in another mine — Kishtaram as the contract was won by a company involving Mr. Srujan Reddy by quoting 3.4% excess rate than the estimated one.

One more company linked to Mr. Srujan Reddy won another contract in October 2025 by quoting 7.95% excess rate compared to estimated rate and the variation was 28.28% (higher) when compared to the previous order of the same mine and 14.31% higher compared to the latest order in another mine, the officials explained.

The sources stated that the Naini mine development and operation (MDO) contract was given to Adani Enterprises after it quoted 44.82% higher than the estimated rate in December 2021, but it was cancelled later.

The JVR coal handling plant built in Sathupalli was awarded at a cost of ₹398 crore for civil works and bunker construction in 2019 and was completed in 2022. In 2024, the bunker structure failed with cracks in beams, making it inoperable. The contract had a strange condition of having the defect liability period of just one year. The company (SCCL) has to reconstruct the damaged structures.