Kishan Reddy acts on Singareni coal ‘scam’

COALGATE ROCKS TELANGANA

After BRS Working President K.T. Rama Rao wrote to Union Coal and Mines Minister G. Kishan Reddy seeking a thorough investigation into the alleged disappearance of 40 lakh metric tonnes of coal from Singareni stockyards, the Union Minister has formally written to Telangana Chief Minister Revanth Reddy

metro india news  I hyderabad

Union Coal and Mines Minister G. Kishan Reddy has written to Telangana Chief Minister A. Revanth Reddy, urging a comprehensive inquiry into allegations surrounding the disappearance of nearly 40 lakh tonnes of coal from Singareni Collieries Company Limited (SCCL) stockyards, an issue that has triggered widespread public concern in Telangana.

The development assumes significance as it comes exactly one week after BRS Working President K.T. Rama Rao wrote to the Union Minister on June 5 seeking an independent and transparent investigation into what he described as a massive Rs 1,600 crore coal scam in SCCL.

In his letter, Kishan Reddy highlighted the strategic importance of SCCL, a joint venture between the Government of India and the Government of Telangana. He noted that the company serves as a cornerstone of Telangana's economy, providing livelihoods to around 40,000 employees and their families while making a significant contribution to India's coal production and national energy security.

Referring to recent media reports alleging irregularities and unethical practices within SCCL, the Union Minister said such allegations, if proven true, could adversely affect the interests of the company. He specifically cited reports claiming that nearly 40 lakh tonnes of coal valued at approximately Rs 1,600 crore had gone missing, resulting in a substantial financial loss to the public sector mining company.

Kishan Reddy further observed that SCCL is already facing financial stress due to pending dues exceeding Rs 51,500 crore from the Telangana government. In such a situation, he cautioned that unresolved allegations could further weaken the company's financial position and hamper its future growth and sustainability.

The Union Minister urged the Chief Minister to ascertain the facts and initiate an immediate inquiry to determine whether the allegations contained any truth. He also called for a review of existing safeguards, monitoring mechanisms and internal control systems within SCCL to assess whether they were adequate for the effective functioning of the organisation.

Emphasising the need for systemic reforms, Kishan Reddy recommended the adoption of technology based monitoring tools and periodic review mechanisms to identify weaknesses at an early stage and address them promptly. According to him, such measures would help close systemic gaps, prevent recurrence of similar issues and further strengthen the efficiency, transparency and credibility of the organisation.

The Minister also sought the Chief Minister's personal intervention in ensuring the smooth functioning of SCCL and protecting the welfare of thousands of workers and families who depend directly and indirectly on the company.

The letter marks the first formal response from the Union Coal Ministry after KTR raised the issue with the Centre. Political observers note that the Union Minister's communication lends further weight to demands for a transparent investigation into the alleged coal stock discrepancy and places the responsibility on the Telangana government to establish the facts and reassure stakeholders about the integrity of SCCL's operations.