Hyderabad, Jan 20 (NationPress) BRS leader T. Harish Rao has reached out to Union Minister for Coal and Mines G. Kishan Reddy, requesting a CBI investigation into alleged irregularities at the Singareni Collieries Company Limited, a public-sector enterprise.

In his correspondence, Harish Rao emphasized the urgent need for the Union Minister's intervention over what he described as serious and ongoing irregularities at SCCL. These include arbitrary policy changes, the cancellation of competitively awarded contracts from the previous BRS government, and the disturbing silence from Central government-nominated Directors on the SCCL Board. He suggested that these issues indicate a potential larger nexus and ongoing financial detriment to this crucial public sector entity.

After the Telangana state government changed in 2024, SCCL introduced a new requirement for a so-called 'Site Visit Certificate' as a mandatory precondition for participating in tenders. This procedure has no historical precedent in Singareni and is not employed by Coal India Limited or Western Coalfields Limited.

“The implementation of this system has led to the cancellation of numerous competitive tenders and contracts being awarded at inflated rates ranging from +7% to +10%. This is in stark contrast to national norms, where OB coal block tenders typically conclude at -10% to -22%. Historically, Singareni tenders were awarded at -7%, -8%, -10%, and sometimes even -20%. Alarmingly, several tenders finalized during the BRS regime at competitive rates of -7% to -10% were cancelled without any technical failures or financial defaults, and were subsequently re-tendered at significantly higher rates,” the letter states.

Harish Rao noted that the systematic cancellation of competitively awarded contracts and their re-allotment at higher prices strongly suggests a deliberate reversal of competitive results, leading to significant financial losses for SCCL.

Additionally, he pointed out that the longstanding practice of bulk diesel procurement directly from IOCL was halted, transferring the responsibility of diesel supply to contractors. This change has raised project costs, imposed an unnecessary GST burden, and adversely affected the financial standing of the PSU. Such a decision, made without transparent justification, raises further concerns about potential commission-driven policy manipulations.

“Most concerning is the conspicuous silence of Central government-nominated Directors on the SCCL Board, whose primary duty is to protect public interest, ensure transparency, and prevent the misuse of public funds. They have remained silent despite significant deviations from established tendering norms, the cancellation of earlier competitive contracts, and the awarding of inflated contracts under a non-standard process, as well as repeated complaints from contractors and stakeholders,” stated the BRS leader.

Harish Rao concluded that only a CBI investigation can impartially scrutinize the legality and motivations behind the introduction of the site visit certification system, the cancellation of BRS-era competitive tenders, the re-award of contracts at higher rates, the discontinuation of bulk diesel procurement, and any potential collusion among political authorities, contractors, SCCL officials, and Board members, as well as the role, awareness, and accountability of Central government-nominated Directors.