The Singareni Collieries Company Limited (SCCL) on Sunday, 21 June flatly denied allegations that nearly 40 lakh tonnes of coal worth approximately ₹1,600 crore had gone missing from its stocks, calling the claims baseless and asserting that its coal operations are governed by a multi-layered digital surveillance framework. The denial came days after Union Coal Minister G. Kishan Reddy wrote to Telangana Chief Minister A. Revanth Reddy on 10 June, demanding an urgent probe into the reported irregularities.

Background: The Allegations

The controversy was triggered by a letter from Union Coal Minister Kishan Reddy to the Telangana government, in which he flagged reports of 40 lakh tonnes of coal allegedly disappearing from SCCL stocks. He described the reported irregularities as 'serious' and warned they could damage the company's financial health and long-term growth prospects.

Opposition Bharat Rashtra Samithi (BRS) also alleged a massive coal scam at the company and demanded a thorough independent investigation. The minister further noted that unpaid dues exceeding ₹51,500 crore owed by the Telangana government to SCCL were already straining the company's finances, making any additional losses particularly consequential.

'I wish to bring to your notice reports about the disappearance of 40 lakh tonnes of coal worth ₹1,600 crore, causing significant financial loss to the company,' Kishan Reddy wrote in his letter.

What SCCL Said in Its Defence

SCCL issued a formal clarification stating that all processes related to coal production, stockpiling, transportation, and sales are conducted with 'complete transparency' under modern technological systems. The company detailed its end-to-end digital monitoring architecture, asserting that every tonne of coal is tracked from the point of extraction to delivery.

'Every stage — from the moment coal is produced at the mines until it reaches the consumer — is digitally recorded,' the company said in a statement. It added that approximately 85 per cent of coal is supplied via rail, with the remaining 15 per cent transported by road, and that allocations are managed through an integrated SAP-based system with consumer, mine, quantity, and supply date logged in advance.

The Surveillance Architecture

Senior officials from SCCL's Operations and Planning departments elaborated on the monitoring mechanisms in place. Every road transport vehicle is weighed at electronic weighbridges, and real-time movement is tracked through RFID-based boom barriers, GPS/GPRS systems, and geofencing. Rail dispatch data — including wagon loading and dispatch details — is digitally recorded at every stage.

Round-the-clock surveillance is maintained using CCTV cameras, RFID systems, check-posts, flying squads, and security personnel deployed at mines, coal handling plants, weighbridges, railway sidings, stockyards, and entry-exit points. Surprise inspections and special patrols are also conducted on a continuous basis, according to officials from the Coal Transport department.

SCCL management concluded that allegations of coal theft or disappearance were 'baseless' given this 'highly robust, multi-layered security framework' comprising RFID, GPS, CCTV, Coal Net, electronic weighbridges, hologram challans, and task force monitoring.

Ownership and Financial Context

SCCL is a joint venture owned by the Telangana government and the Centre on a 51:49 equity basis. The company's financial position has reportedly been under pressure, with unpaid dues from the state government exceeding ₹51,500 crore — a figure that Union Minister Kishan Reddy cited as a compounding risk factor if the coal-loss allegations were substantiated.

Whether the government orders a formal probe or accepts SCCL's clarification will likely determine the political trajectory of this dispute in the weeks ahead.