Kishan Reddy seeks release of ₹55,000-cr dues to help SCCL bid for new coal block

Union Coal and Mines Minister G. Kishan Reddy has appealed to the Telangana Government to release ₹55,000 crore in overdue payments to Singareni Collieries Company Limited (SCCL). This financing would enable the public sector coal producer to compete in the forthcoming auction of the Koyagudem Block-3 coal block in Bhadradri Kothagudem district.

Speaking to reporters in New Delhi, the minister explained that the auction is being re-run after the original private bidder failed to kick off production within the required period, which led to the cancellation of its allocation.

Reddy emphasized that SCCL possesses the capacity to extract approximately 120 million tonnes of Grade-13 coal from the block. The mine has been auctioned on two previous occasions, but the previous government, BRS, allegedly prevented SCCL from participating, leading to the allocation of the mine to a private entity. The minister expressed concern over SCCL's financial situation, noting that the company is struggling and heavily reliant on overdrafts to fulfill salary and wage obligations.

To bolster its financial standing, Reddy urged SCCL to secure additional coal production blocks, minimize unnecessary expenses, and receive the pending dues from the State Government. He firmly stated that it is inappropriate for the government to retain revenues derived from coal, which are the fruits of the labor of thousands of SCCL employees and workers.

The minister highlighted several recent steps taken by the central government to bolster SCCL's operations and meet Telangana's energy demands, including the finalization of coal supplies from the Naini coal block in Odisha to the Yadadri Thermal Power Station, and the allocation of the Tadicherla-2 coal block and PKOC-2 opencast dip-side block to SCCL.