In a significant development from Hyderabad, Union Coal and Mines Minister G Kishan Reddy made a strong statement on Thursday, declaring that the Central government stands ready to step in and conduct auctions for the crucial Naini coal block if the Telangana state government fails to execute the process effectively.
Centre's Intervention for Transparency
Addressing journalists at the Bharatiya Janata Party office in the city, Reddy emphasized that the Centre is fully prepared to handle the tender process and allocate the coal block to Singareni Collieries Company Limited. This intervention, he asserted, would serve the dual purpose of ensuring complete transparency and securing the future prospects of the company.
Accusations Against State Governments
The Union minister launched sharp criticisms against both the previous Bharat Rashtra Samithi administration and the current Congress-led government in Telangana. He alleged that corruption under these regimes has placed an unfair and substantial burden on the hardworking employees of Singareni Collieries.
"The Centre remains firmly committed to the welfare of Singareni workers and the long-term viability of the company," Reddy stated during the press conference. He revealed that expert committees have already been constituted to thoroughly study and implement cost reduction measures while improving operational efficiency across the organization.
Ball in Chief Minister's Court
Reddy reiterated a crucial point regarding investigative procedures, noting that the previous BRS government had established barriers preventing Central Bureau of Investigation probes without explicit state permission. He challenged those demanding inquiries to directly urge the Chief Minister to authorize a CBI investigation into the tender process concerning the Naini coal block.
"The Centre has never directly interfered in Singareni's functioning," Reddy clarified, while acknowledging the company's vital role in Telangana's development and economic growth since the state's formation.
Financial Challenges and Mismanagement
The minister presented a concerning financial picture, revealing that Singareni began incurring substantial losses following Telangana's formation. He attributed this downturn to steadily rising operational costs coupled with declining revenues, creating a perfect storm of financial challenges.
Reddy pointed to alleged financial mismanagement under both the previous BRS government and the current Congress administration as contributing factors to the company's difficulties.
Transparent Auction Process Since 2015
Highlighting the Centre's track record, Reddy noted that the central government has been conducting coal block auctions with complete transparency since 2015 without any significant errors or controversies. He shared positive indicators, revealing that coal production has shown steady increases under this system.
Perhaps most notably, Reddy announced that coal reserves now last approximately 25 days, representing a substantial improvement compared to the mere seven to eight days of reserves available in earlier periods.
Production Cost Disparities Revealed
In a detailed comparison that highlighted significant cost disparities, Reddy presented figures showing Singareni's production costs substantially exceed those of other public sector companies. Western Coalfields produces coal at ₹1,736 per tonne, while Singareni's production costs reach ₹2,878 per tonne—a difference of over ₹1,100 per tonne.
The minister further illustrated pricing discrepancies, noting that G11 grade coal sells for ₹4,088 per tonne through Singareni, while the same grade commands only ₹2,491 per tonne in Western Coalfields markets.
Criticism of State Government Policies
Reddy accused the state government of failing to disclose key cost details that would provide complete transparency about Singareni's financial situation. He specifically criticized the introduction of a 'site visit certificate' requirement in tenders, describing this as part of flawed policies that have distorted the entire tender process.
The Union minister's statements come just one day after he announced the Centre's willingness to order a CBI probe into Singareni Collieries, indicating escalating tensions between central and state authorities regarding the management and future of this crucial Telangana enterprise.
