Kishan Reddy urges CM Revanth to pull GENCO from PKOC coal tender
Synopsis
Union Coal Minister G. Kishan Reddy has publicly urged Telangana CM Revanth Reddy to direct state utility GENCO to withdraw from the tender for the PKOC Dip Side Extension coal block near Manuguru, so it can be awarded to Singareni Collieries (SCCL), following demands from mining labour unions.
Key Takeaways
Union Coal and Mines Minister G.
Kishan Reddy called on CM Revanth Reddy on 27 July 2026 to intervene in the PKOC coal block tender.
The PKOC (Prakasham Khani Open Cast) – Dip Side Extension block near Manuguru, Bhadradri Kothagudem was recently opened for auction by the central government.
Mining labour unions had demanded the block be awarded exclusively to Singareni Collieries Company Limited (SCCL) .
Telangana GENCO entered the same tender as a competing bidder, creating a conflict between two state-linked entities.
Kishan Reddy urged GENCO to withdraw so the block goes to SCCL, reflecting the minister's stated priority for the Singareni company.
The episode highlights recurring federal tensions over coal block allocation in Telangana's mineral-rich Godavari Valley coalfields.
Union Coal and Mines Minister G. Kishan Reddy on Monday, 27 July 2026, publicly called on Telangana Chief Minister Revanth Reddy to direct the state power utility Telangana GENCO to withdraw from the tender for the PKOC (Prakasham Khani Open Cast) – Dip Side Extension coal block near Manuguru in Bhadradri Kothagudem district, so that the block can be allocated to Singareni Collieries Company Limited (SCCL).
Context
Posting in Telugu on X, Kishan Reddy stated that the PKOC Dip Side Extension block was recently brought into the auction process. He noted that mining labour unions had urged that the block be awarded exclusively to SCCL, reflecting long-standing worker sentiment about protecting the company's dominance in the Godavari Valley coalfields. 'Our entire concern is that this block should go to Singareni,' the minister wrote, using the colloquial name for SCCL.
However, Telangana GENCO — the state-owned power generation corporation — entered the tender as a competing bidder, placing it in direct contest with SCCL. Kishan Reddy said this development ran counter to the shared objective of securing the block for Singareni, and appealed to CM Revanth Reddy to take personal initiative in resolving the situation.
Policy Backdrop
The auction of coal blocks by the central government flows from the Coal Mines (Special Provisions) Act, 2015, which mandated transparent competitive bidding after the Supreme Court cancelled earlier allocations in 2014. Since 2020, commercial coal mining has been opened to both private and public sector entities under the Atmanirbhar Bharat framework, making it legally permissible for state utilities such as GENCO to participate in central auctions.
SCCL is a joint venture between the Government of India and the Government of Telangana, and has historically received preferential consideration in Telangana's coalfields since the state's formation in 2014. The minister's intervention signals that despite the open-auction regime, political stakeholders on both sides of the federal divide continue to seek carve-outs for favoured entities.
Stakeholders and Impact
SCCL employs tens of thousands of workers across its collieries in Bhadradri Kothagudem and neighbouring districts, making its expansion a politically sensitive issue for Telangana's mining belt. Mining unions that backed the demand for SCCL's exclusive claim represent a substantial organised constituency for both the ruling Congress government in Hyderabad and the BJP, which is seeking to consolidate its base in the region.
Telangana GENCO, on the other hand, participates in coal tenders to secure captive fuel supply for its thermal power plants, a move driven by energy security considerations. The two state-linked entities competing in the same auction illustrates the tension between Telangana's power sector needs and its coal sector interests — both ultimately under the umbrella of the state government.
What's Next
All eyes are now on Chief Minister Revanth Reddy and whether his government will direct GENCO to step back from the PKOC tender. A withdrawal would effectively clear the field for SCCL, though the formal auction process under central law would still need to run its course. The episode is likely to intensify federal-level discussions between the Union Ministry of Coal and the Telangana government on how coal assets in the state's mineral-rich districts are allocated going forward.
Point of View
Yet they are bidding against each other in a central auction, suggesting coordination failures within the state government. At a broader level, this episode is part of a recurring pattern where open coal auctions, designed to increase competition and output, become flashpoints for centre-state friction over who controls mineral wealth in politically sensitive regions. The ball is now squarely in CM Revanth Reddy's court, and his response will signal how his government balances energy security against the political weight of Singareni's organised labour base.
NationPress
28 Jul 2026
Frequently Asked Questions
What is the PKOC Dip Side Extension coal block?
The PKOC (Prakasham Khani Open Cast) Dip Side Extension is a coal block located near Manuguru in Bhadradri Kothagudem district of Telangana, recently brought into the central government's coal block auction process.
Why does Kishan Reddy want SCCL to get the PKOC coal block?
Kishan Reddy stated that mining labour unions had demanded the block be awarded to Singareni Collieries (SCCL), and he shares the view that the block should go to SCCL rather than face competition from another state entity.
Why is Telangana GENCO competing with SCCL in the coal tender?
Telangana GENCO participates in coal block auctions to secure captive fuel supply for its thermal power plants. Since commercial coal mining was opened to all entities from 2020, GENCO is legally entitled to bid in central auctions.
What is Singareni Collieries Company Limited (SCCL)?
SCCL is a joint venture coal mining company between the Government of India and the Government of Telangana, operating primarily in the Godavari Valley coalfields and employing a large unionised workforce in Bhadradri Kothagudem and surrounding districts.
What action is CM Revanth Reddy expected to take?
Kishan Reddy has urged CM Revanth Reddy to take personal initiative and direct Telangana GENCO to withdraw from the PKOC tender, which would clear the field for SCCL in the auction process.
