Kishan Reddy Appoints 2-Member Team to Probe Naini Tender Cancellation

 Hyderabad: Coal and mines minister G. Kishan Reddy on Thursday announced a two-member team from the Union coal ministry — deputy director-general Chetna Shukla and director (technical) Marapalli Venkateshwarlu — would visit Singareni Collieries and investigate the Naini coal block tender cancellation and other related issues.

The move follows a controversy over the cancellation, with the BRS demanding a CBI probe.

At a media briefing, Kishan Reddy said the Centre was ready to investigate all irregularities in Singareni Collieries Company Limited (SCCL) over the past 14 years of BRS and Congress rule — if the state government formally requested it.

Kishan Reddy clarified that the coal mining tenders typically required self-declared site visit certificates from bidders, but the Congress government had mandated project authority certification and denied the same to all 17 visiting companies.

Kishan Reddy accused both the current government and the previous government of "killing Singareni" by failing to modernise mining practices and withholding payment of Rs 47,000 crore in dues to the company. "The KCR family hijacked the company, rendering the board defunct and awarding tenders and contracts to cronies," he charged. BRS leaders splurged CSR funds on luxuries like sofas and swimming pools, pushing up the SCC:’s debts to Rs 32,000 crore, he alleged.

Countering BRS leader Harish Rao's demand for a CBI probe into SCCL affairs, Kishan Reddy noted that the previous BRS government passed an Assembly resolution barring CBI probes without state permission. "The CBI needs the state government’s nod to enter Telangana — why was there no demand then?” he asked. “The BRS government allotted tenders to 12 private firms but never shared details with the Centre, which holds a 49 per cent stake in SCCL."

Kishan Reddy said that though much of the coal went to TGGenco, its dues remained unpaid by the state government. An expert study conducted by Coal India into SCCL revealed high costs, he said, stating that Singareni coal costs Rs 2,878 a tonne, which was 66 per cent higher than Rs 1,736 in Western Coalfields. Grade-11 coal was Rs 4,088 per tonne in Singareni against Rs 2,491 in Western Coal fields, despite similar work conditions.

Kishan Reddy said that the Centre had three directors on the SCCL against seven of the state government. They have no role to play except issuing dissent notes in the board meetings as the company had mostly turned into a family affair, Kishan Reddy said.

He claimed that under the Narendra Modi government, the coal stocks have risen to 25 days (from UPA's 7-8), ensuring no power shortages and that coal is contributing for 74 per cent of generation.