Hyderabad: Union Minister G Kishan Reddy on Thursday, January 22, said he has appointed a committee of central government officials to examine the cancellation of tenders by state-run Singareni Collieries for the Naini coal block, following allegations of irregularities in the tender process.
The Singareni Collieries Company Limited (SCCL), a coal mining company, is jointly owned by the Telangana government and the union government on a 51:49 equity basis.
The state government had recently announced the cancellation of the tenders following allegations of irregularities.
A two-member team of Central officials has been formed, as per Kishan Reddy’s directions, to examine and analyse the Notice Inviting Tender (NIT) published in November last year for the appointment of a Mine Developer and Operator (MDO) for the Naini coal block.
The Terms of Reference (ToR) for the panel include reviewing the NIT, investigating the reasons behind the tender cancellation, comparing practices adopted by other coal companies for MDOs or outsourced coal extraction work, and analysing whether SCCL’s CSR spending is in line with statutory provisions.
The team is scheduled to visit the SCCL headquarters immediately and submit its report within three days, according to an office memorandum.
Speaking to reporters, the Union Coal and Mines Minister said the Telangana government has always held full administrative powers over SCCL, despite the Centre holding 49 per cent equity.
He alleged that the family of former Chief Minister K Chandrasekhar Rao (KCR) wielded complete control over SCCL affairs during the previous BRS regime, including tenders and even minor contracts.
He claimed that SCCL’s CSR funds were misused “buying sofas and swimming pools” in offices of BRS MLAs and in constituencies represented by KCR’s family members.
Reddy further alleged that “corruption and irregularities continued even after the Congress came to power.”
He said, “Fifty per cent of the coal produced by SCCL is supplied to the Telangana Power Generation Corporation (TSGENCO), but payments were not made during the previous BRS government and remain pending under the current Congress administration.”
“The two parties, when in power, are weakening Singareni,” he said, adding that the Telangana government owes about Rs 47,000 crore to SCCL, of which Rs 35,000 crore accumulated during the BRS regime.
He urged the state government to clear the dues. Referring to the tender cancellations, Reddy said the state government should conduct a probe.
He alleged that authorities had attempted to issue certain certificates for companies arbitrarily, even after withdrawing the tender process following reports of irregularities.
Political tensions in Telangana surged on Wednesday over the alleged irregularities in SCCL tenders, with the BRS calling for a high-level inquiry and the ruling Congress challenging the opposition to a debate on the issue.
Observing that the state government’s consent is required to initiate a CBI probe, Reddy said the Centre would consider an investigation by the premier agency if Telangana agrees.
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