Harish Rao Seeks CBI Probe Into Irregularities at Singareni Collieries
BRS MLA and former minister T. Harish Rao writes to Union Minister Kishan Reddy alleging contract cancellations, inflated tender awards, and silence of Central-nominated SCCL directors, demanding independent investigation to protect the PSU’s financial interests.
By : DC Correspondent
Update: 2026-01-20 05:30 GMT
Hyderabad: BRS MLA and former minister T. Harish Rao has written to Union Minister Kishan Reddy, urging his intervention into alleged irregularities at Singareni Collieries Company Limited (SCCL).
In his letter, Rao raised concerns over arbitrary policy changes, cancellation of competitively awarded contracts from the previous BRS government, and the continued silence of Central Government-nominated directors on the SCCL Board.
Rao highlighted the introduction of a “Site Visit Certificate” system in 2024, a requirement not previously followed by SCCL or other coal companies, which has led to tender cancellations and subsequent contract awards at inflated rates between +7% and +10%. He noted that contracts earlier awarded through competitive bidding at -7% to -10% were scrapped without technical or financial justification and re-tendered at higher costs, causing significant financial loss to the PSU.
The minister also criticized the discontinuation of SCCL’s bulk diesel procurement directly from IOCL, shifting supply to contractors, which increased project costs and added an avoidable GST burden. He expressed concern over the prolonged absence of a regular SCCL CMD, which, he said, has weakened institutional oversight.
Pointing to the silence of Central-nominated directors, Rao questioned whether proper objections were raised or if their inaction indicated deeper collusion. He stressed that only a CBI investigation could impartially probe the legality and intent behind policy changes and tender irregularities, holding all responsible parties accountable.
Rao urged the Union Minister to intervene immediately, ensure a CBI inquiry, and safeguard the PSU from systemic corruption, irrespective of political affiliations.