Union Coal Minister G Kishan Reddy said the Centre was committed to protecting the interests of Singareni workers and ensuring transparency in coal block operations.
Published Jan 23, 2026 | 7:00 AM ⚊ Updated Jan 23, 2026 | 7:00 AM
Coal mining. Representational Image. (iStock)
Synopsis: The Union government has set up a two-member technical panel to examine the cancellation of a tender by the Telangana government to appoint a private developer and operator for the Naini coal block originally allotted to Singareni Collieries Company Limited. Union Coal Minister G Kishan Reddy said the Centre was acting to protect workers’ interests and ensure transparency, and accused the previous BRS government and the Congress of political interference and mismanagement.
The Union government has constituted a two-member technical team to analyse the Notice Inviting Tender (NIT) for appointing a Mine Developer and Operator (MDO) for the Naini coal block of Singareni Collieries Company Limited (SCCL), following the tender’s cancellation by the Telangana government.
Allotted to the state in 2015 as a captive mine, the coal block in Odisha’s Angul district has in recent weeks become the centre of a political storm. The block was expected to be developed by SCCL, a state-run PSU, but the State government instead moved to appoint a private MDO.
The tender process was abruptly cancelled last week by Deputy Chief Minister Mallu Bhatti Vikramarka, who also holds the Energy portfolio, raising eyebrows.
As many as 17 companies are said to have conducted site visits, but none were issued the required certificates, which stalled the process further.
The technical committee, constituted on Wednesday, 21 January 2025, by the Union Ministry of Coal, will examine the NIT issued on 28 November 2025 and identify the reasons that led to the scrapping of the tender.
The team comprises Chetna Shukla, Deputy Director General, and Marapally Venkateshwarlu, Director (Technical/NA), Ministry of Coal.
The committee’s terms of reference include analysing the NIT issued to appoint an MDO and identifying the procedural or technical factors that led to the cancellation of the tender.
It has also been asked to carry out a comparative assessment of how other coal companies prepare NITs for MDO appointments and for outsourcing coal extraction work.
In addition, the committee will examine whether SCCL’s corporate social responsibility spending, both in pattern and amount, complies with statutory CSR provisions.
The technical team has been directed to visit the SCCL headquarters immediately and submit its report within three days.
Union Coal Minister G Kishan Reddy, speaking to the media on Thursday, 22 January, said the Centre was committed to protecting the interests of Singareni workers and ensuring transparency in coal block operations.
Amid calls for a Central Bureau of Investigation probe, he said the previous BRS government had barred the central agency from probing any case in Telangana.
He recalled that former Chief Minister K Rosaiah had allotted the Tadicherla coal block to SCCL, but after coming to power, the BRS handed it to a private player.
“If the Telangana government is unable to conduct transparent tenders or manage captive coal blocks, the Centre is prepared to step in, conduct transparent auctions, and ensure the blocks are allocated to Singareni in the interests of workers and the State’s economy,” he said.
Tender conditions and Centre’s stand
The Naini coal block was allocated by the Centre as a captive mine to the State government, with the clear expectation that mining operations would be carried out by SCCL, in which the Telangana government holds a 51 percent stake and the Centre 49 percent.
However, the State government later said SCCL was incapable of executing the project and moved to hand over operations to private players.
As part of the tender process, 17 companies reportedly conducted site visits, with the bid submission deadline set for 29 January. The State government made a project authority-issued site visit certificate mandatory, instead of the standard self-declaration.
Despite multiple site visits, no certificates were issued to any company, which effectively stalled the process. A similar approach was adopted earlier under the BRS regime, when tenders were floated and cancelled midway after bids were received, he said.
Dismissing allegations of Central interference, G Kishan Reddy said the Centre had never exercised direct control over Singareni, either under Congress governments or the NDA.
“Singareni has always remained under the full administrative control of the State government. The Centre has no direct authority over operations, tenders, or contracts,” he said.
He added that the Union Ministry does not receive routine details of tenders or procurement decisions taken by coal companies. He said the Singareni board has seven directors nominated by the State government and three by the Centre, giving the State a clear majority.
“All decisions are taken at the board level. Even when Central directors submit dissent notes, decisions are pushed through because of the State’s numerical strength,” he said.
Minister alleges political interference in Singareni functioning
The 136-year-old SCCL, which operates across eight districts in the State, was once a profitable enterprise and played a crucial role in Telangana’s industrial growth and the statehood movement, Kishan Reddy said.
However, after the formation of Telangana, the company gradually slipped into financial distress due to political interference, he alleged.
During the BRS party’s decade-long rule, he alleged, the K Chandrashekar Rao family exercised total control over the company. From major tenders to small contracts, decisions were taken at the political level.
Pointing to operational inefficiencies, the Minister said coal production costs at Singareni were far higher than at comparable public sector entities. While Western Coalfields spends about ₹1,736 to produce one tonne of coal, the cost at Singareni is ₹2,878, around 66 percent higher.
Similarly, Singareni sells G11 grade coal at ₹4,088 per tonne, while the same grade is priced at ₹2,491 at Western Coalfields, he said. He added that the State government had never placed clear cost data in the public domain.
He also accused the Telangana government of accumulating massive dues, saying the State government alone owes Singareni about ₹32,000 crore.
About 50 percent of Singareni’s coal output is supplied to State-run TG Genco, he said, but successive governments have failed to clear power utility dues, which has worsened the cash crunch.
The Minister also alleged misuse of CSR funds and District Mineral Foundation allocations during the BRS regime, saying money meant for mining-affected areas was diverted for political purposes.
Nearly ₹1,500 crore under the DMF has not been released to districts for infrastructure, healthcare, and employment initiatives, he said. As a result, Singareni has been unable to modernise operations or introduce new technology, forcing workers to rely on outdated machinery and face greater physical strain, he added.
The Minister said about 12 private companies are currently operating in Singareni, many of them engaged during the BRS regime, without adequate disclosures to the Centre. He also flagged violations in appointments to key positions, alleging that CMD tenure norms were breached and that the Congress government is continuing with in-charge CMDs instead of appointing full-time heads.
“Singareni is not the property of any family or political party,” Kishan Reddy said.
“It is built on the blood and sweat of its workers. If anyone plays with their lives for political or commercial gain, history will not forgive them,” he said.
(Edited by Dese Gowda)
