HYDERABAD
The difference in successful bid value of overburden (OB) contracts of Singareni Collieries Company Ltd (SCCL) awarded between April 2025 and October 2025 compared to those awarded during March 2015 and September 2023 is very minimal.
The average successful overbid value is 4.07% for the five contracts awarded between April 2025 and October 2025 after the Congress party came to power, which was 4.7% higher than the value/rate estimated by the company when the BRS was in power.
According to official sources, the successful overhang bid ranged between 0.09% and 35.57% during 2015-23, while between 0.07% and 7.95%. The issue of OB contracts has been in the headlines following allegations by BRS, especially former minister T. Harish Rao, stating that they were awarded at lower rates than estimated rate/value.
A company linked to Chief Minister A. Revanth Reddy’s brother-in-law S. Srujan Reddy won the Venkatesh Khani coal mine contract in October 2022. However, the contract was terminated as the bid rate variance was 1.32% lower than the estimated rate. Later, another company linked to Mr. Srujan Reddy won the same contract while quoting 4.34% excess rate over the estimated rate/value in September 2023.
Official sources said the 4.34% overrun was 13.83% more than the last contract awarded in another mine – Kishtaram, as the contract was won by a company including Mr. Srujan Reddy citing a 3.4% overrun than estimated.
One more company linked to Mr. Srujan Reddy won another order in October 2025 by quoting 7.95% excess rate compared to the estimated rate and the deviation was 28.28% (higher) compared to the previous order of the same mine and 14.31% higher compared to the latest order in another mine, officials explained.
Sources said the Naini mine development and operation (MDO) contract was given to Adani Enterprises after quoting 44.82% higher than the estimated rate in December 2021, but was later cancelled.
The JVR coal handling plant built at Sathupalli was valued at a cost of ₹398 million for civil works and bunker construction in 2019 and was completed in 2022. In 2024, the bunker structure collapsed with cracks in the beams, rendering it inoperable. The contract had a special condition that the liability period for defects is only one year. The company (SCCL) must reconstruct the damaged buildings.
Published – 21 Jan 2026 21:10 IST
