Kishan Reddy urges Telangana to release ₹55,000-cr dues for SCCL's coal block bid

Union Coal and Mines Minister G. Kishan Reddy on Tuesday urged the Telangana Government to clear the pending dues of ₹55,000 crore owed to Singareni Collieries Company Limited (SCCL), saying the funds would help the public-sector miner participate in the fresh auction of the Koyagudem Block-3 coal mine in Bhadradri Kothagudem district.

Speaking to reporters in New Delhi, Mr. Reddy said the coal block was being reauctioned after the private company that had originally won the allocation failed to commence production within the stipulated timeframe. The block holds an estimated 120 million tonnes of Grade-13 coal, he added.

The Minister said the Central Government was making efforts to ensure that the block is awarded to SCCL, which has the capability to extract the available coal. He claimed that the previous BRS government in Telangana had prevented SCCL from participating in earlier auctions of the same mine, leading to its allocation to a private company.

Expressing concern over the financial health of SCCL, Mr. Reddy said the company was facing a difficult situation and had to rely on overdrafts to meet salary and wage commitments. “The company must secure additional coal production blocks, reduce unnecessary expenditure and receive its pending dues from the State Government to improve its financial position,” he said.

The Minister asserted that it was inappropriate for the State Government to withhold revenue generated from coal, which is the result of the hard work of thousands of SCCL employees and workers. He urged the State Government to expedite the payment of the outstanding dues.

Mr. Reddy also highlighted recent Central initiatives aimed at strengthening SCCL’s operations, including the finalisation 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 the PKOC-2 opencast dip-side block to SCCL. These measures, he said, reflect the Central Government’s commitment to support Telangana’s energy requirements.

SCCL is a joint venture between the Telangana Government and the Central Government, with the State holding a 51% stake. The pending dues are reported to include unpaid revenue share and statutory levies owed by the State Government to the company. There was no immediate response from the Telangana Government to the Minister’s remarks.