Former minister T Harish Rao has made a strong demand for a Central Bureau of Investigation (CBI) probe into alleged irregularities within the Singareni Collieries Company Limited (SCCL). He specifically pointed to the Naini coal block tenders issue. Rao accused the current government of internal share disputes and widespread corruption.
Immediate Actions Demanded
Harish Rao called for several urgent measures. He wants the immediate cancellation of all tenders issued under the controversial site visit system. Rao demanded the permanent withdrawal of this method. He also insisted on the restoration of the earlier diesel procurement policy. Furthermore, he stressed the need for appointing a qualified person as the chairman and managing director (CMD) for Singareni.
Press Conference Allegations
Speaking at a press conference held at Telangana Bhavan on Monday, Harish Rao addressed claims made by Deputy CM Bhatti Vikramarka. Vikramarka stated that Naini block tenders were cancelled due to benefit of doubt and issues with site visit certificates. However, Rao questioned the very existence of such a certification system.
There was no site visit certification system anywhere in Telangana earlier, he asserted. This method did not exist anywhere in the country, not even in Coal India or Western Coalfields. Rao emphasized that this system was introduced only in 2024, after the Revanth Reddy government came to power.
Specific Irregularities Cited
Harish Rao alleged that after the site visit clause was introduced, only one company, Shodha Constructions, secured the first tender. He claimed that following the implementation of this method, six Singareni tenders were awarded at inflated rates of plus seven percent to favored individuals.
In coal block tenders across the country, rates normally go at minus ten percent to minus twenty-two percent, Rao explained. Earlier, Singareni tenders used to be awarded between minus seven percent and even minus twenty percent. But after the new government came, all tenders are going between plus seven and plus ten percent.
Questioning Selective Cancellation
Rao raised a critical question about why only the Naini block tenders were cancelled. What about the remaining tenders awarded under the same illegal system? he asked. He elaborated that online tenders typically allow contractors from anywhere in the country to participate freely.
However, under the site visit system, bidders must first visit the site and obtain certification from Singareni. This allows the identification of bidders in advance, he alleged. They are then threatened, pressured, and pushed out. Later, tenders are awarded to loyal contractors at inflated rates, and commissions are collected.
Examples of Cancelled Tenders
Harish Rao further alleged that tenders awarded competitively during the previous BRS government were cancelled and reissued to benefit favored contractors. He provided specific examples to support his claims.
- A tender awarded at minus seven percent was cancelled and reissued at plus seven percent.
- Another tender at SRP OC-II, earlier at minus seven percent, was cancelled and handed over again at plus seven percent.
He added that the SRP OC-II Expansion 2025 tender was deferred three times because deals could not be finalized. Attempts are still being made to hand it over to preferred parties, according to Rao.
Diesel Supply Irregularities
Rao highlighted another major irregularity related to diesel supply. Earlier, Singareni had been procuring diesel in bulk from Indian Oil Corporation (IOC). But now, diesel supply was handed over to contractors for commission. This caused heavy financial loss to Singareni, he stated.
GST is now paid not only for work but also for diesel. This directly burdens the company, Harish Rao concluded, underscoring the financial strain on the public sector undertaking.
