Union Coal and Mines Minister G. Kishan Reddy on Tuesday, 14 July 2026, raised pointed demands with the Telangana government over transparency in District Mineral Foundation (DMF) fund utilisation and flagged nearly ₹9,000 crore in pending dues owed to Singareni Collieries Company Limited by Telangana Power Generation Corporation (GENCO). The Minister also cited the Centre's allocation of the Tadicherla-2 Coal Block to Singareni as evidence of Prime Minister Narendra Modi's commitment to the company and its workers.

Context

Reddy, who also serves as BJP Telangana state president, posted on X demanding that the state government account for how DMF funds — collected from mining lease-holders and routed to mining-affected districts — have been deployed. He stated he had 'raised serious concerns over the nearly ₹9,000 crore in pending dues owed to Singareni for coal supplied to Telangana GENCO, which has placed an unnecessary financial burden on the company.'

Singareni Collieries is a jointly owned public sector undertaking, with equity held by both the Union government and the Telangana state government. It is the primary domestic coal supplier to Telangana's thermal power stations, making the GENCO payment backlog a financially sensitive issue for the company's operations and its workforce.

Policy Backdrop

The District Mineral Foundation was mandated under the Mines and Minerals (Development and Regulation) Amendment Act, 2015, requiring mining lease-holders to contribute a percentage of their royalties into district-level trusts meant to benefit communities affected by mining operations. The Union government has periodically pressed states to ensure these funds are deployed transparently and reach intended beneficiaries rather than sitting unutilised.

Coal block allocations remain a Union prerogative under the Coal Mines (Nationalisation) Act framework, giving the Centre significant leverage in its dealings with coal-producing states. Reddy highlighted that the Centre's decision to allocate the Tadicherla-2 Coal Block to Singareni reflects the Modi government's 'unwavering commitment' to protecting the company and 'safeguarding the interests of its workers.'

Stakeholders and Impact

The payment standoff between Telangana GENCO and Singareni touches the livelihoods of thousands of Singareni workers and the financial health of a company that anchors the coal economy of Telangana's Godavari coalfields region. Delays in inter-corporate settlements can constrain Singareni's capital expenditure, wage disbursements, and mine expansion plans.

Mining-affected communities in districts such as Bhadradri Kothagudem and Mancherial are the intended beneficiaries of DMF funds. Opacity in their utilisation has drawn scrutiny from civil society and parliamentary oversight bodies in multiple coal-bearing states, not only Telangana.

What's Next

Reddy expressed confidence that a future BJP government in Telangana would 'strengthen Singareni, ensure transparent governance, improve workers' welfare, and develop the organisation with the welfare and aspirations of its workers at the heart of every decision.' The statement signals that Singareni's financial health and DMF accountability will remain central BJP campaign planks ahead of the next Telangana assembly election.

Parliamentary and audit scrutiny of DMF fund utilisation reports from Telangana's mining districts, and any formal follow-up on the inter-corporate dues between Singareni and GENCO, are likely to keep this issue in the political spotlight in the months ahead.