Union Minister G. Kishan Reddy addressed the media in New Delhi on Wednesday.
The Center is considering setting up a special committee to oversee the coal block tender process of Singareni Collieries Company Limited (SCCL) in light of the recent allegations as the matter concerns the future of the company and the livelihood of thousands of families dependent on it, Union Coal and Mines Minister G. Kishan Reddy said.
“There is an urgent need to curb illegal activities in SCCL. This is not just a political issue involving ministers, parties or governments. The coal secretary will write to the chief secretary of Telangana to discuss the tender process in detail. A tripartite agreement is also necessary. The Center is ready to take over the profitable operation of Singareni if the state government hands it over,” he said at a press conference in New Delhi on Wednesday.
The minister claimed to be introducing systemic reforms, holding regular review meetings and raising critical questions in his department. However, the issues repeatedly raised by the Center’s representatives in the SCCL board were not addressed, he noted.
Although SCCL is a profitable company, it ran into financial difficulties after the formation of Telangana. He alleged that the dues owed to SCCL by the state government had increased from ₹32,000 to ₹47,000, alleging that both the previous BRS government and the current Congress government were “exploiting” the firm.
With a 51% stake, TG has administrative control, while the Centre, which holds 49%, has no direct authority but is represented by three directors out of ten on the board. Due to the alleged failures of the state government, SCCL is now borrowing from banks only to pay salaries, he said.
Comparing coal prices, the minister said the same grade of coal from Coal India costs ₹ 1,605 per tonne, which is almost two-and-a-half times cheaper than SCCL’s price. “But SCCL has no option but to increase prices to survive,” he said.
Mr. Reddy added that TGGENCO, which buys coal from SCCL, is also a government entity, resulting in constant price hikes even though SCCL’s coal quality averages 58% compared to Coal India’s 86%. As a result, SCCL compromises on quality and pricing, with customers gradually distancing themselves.
The minister further alleged that during the BRS regime, the “order of the KCR family” prevailed in awarding contracts and alleged that the present Congress government is following the same pattern. The introduction of site inspection clause in tenders has mandatorily opened the door for irregularities even though similar tender processes in many central PSUs are implemented in a transparent manner, he said and wanted to know when TG intends to reimburse the SCCL dues.
Published – 21 Jan 2026 20:57 IST
