BRS claims tender manipulation in Singareni; –12% bid reveals cartel system

Former Minister T. Harish Rao alleged that large-scale manipulation and cartelisation in Singareni Collieries Company Limited (SCCL) tenders and claimed the –12% bid recorded in the SRP OC-II tender has clearly revealed how contractor cartels were operating.

He said BRS had earlier raised serious concerns about irregularities in Overburden (OB) tenders in Singareni and exposed how the controversial Site Visit Certificate system was being used to control bidders and favour select contractors.

Mr. Rao pointed out that after the BRS exposed the issue, the financial bid opening for the SRP OC-II tender at Srirampur was postponed seven times, raising strong suspicions that attempts were being made to facilitate a contractor cartel.

However, due to continuous pressure from BRS and growing public scrutiny, the authorities were eventually forced to open the financial bids without allowing the contractor ring to operate. Once genuine competition was restored, the tender closed at –12%, which is the first negative bid recorded after the Site Visit Certificate system was introduced.

Mr. Harish Rao claimed this single result has exposed the entire manipulation. When the contractor ring collapses, real competition returns and the rates automatically fall. The –12% bid clearly proves that the earlier tenders finalised at +7% to +10% were not market outcomes but the result of cartelisation and manipulation.

He recalled that before the introduction of the Site Visit Certificate clause, OB tenders in Singareni were regularly finalised through competitive online bidding at –7% to –20%, saving hundreds of crores for the public sector company. But after the clause was introduced, and a contractor ring allegedly operated under the influence of Chief Minister A. Revanth Reddy’s relative Srujan Reddy.

He further stated that the damage caused by this system extends beyond tenders. Because of delays and irregularities in OB works, coal production in Singareni has declined. He demanded that the government immediately ensure complete transparency in Singareni tenders.