A major controversy has erupted over the alleged disappearance of 40 lakh tonnes of coal, valued at approximately Rs 1,600 crore, from the stockyards of the Singareni Collieries Company Limited (SCCL). Union Coal and Mines Minister G. Kishan Reddy has written to Telangana Chief Minister A. Revanth Reddy, urging an urgent, high-level inquiry into these reports to determine if the missing coal is a result of operational lapses or systemic irregularities.
The Reason Behind the Letter
While the Union Government holds a 49% stake in SCCL, the company is primarily under the administrative control of the Telangana government, which holds the remaining 51% equity. Because SCCL is a state-run entity, the Union Minister cannot unilaterally order a departmental inquiry into the company’s daily operations.
By writing directly to the Chief Minister, G. Kishan Reddy is exercising his role as a stakeholder to demand transparency. He highlighted that SCCL is already under immense financial strain, with over ₹51,500 crore in unpaid dues from the state government. He warned that if these allegations of missing inventory are not addressed, it could further destabilize the company’s financial health and hinder its future sustainability.
Past and Present Irregularities
SCCL has faced various allegations of irregularities over the decades, often brought to light by vocal trade unions. Historically, these issues included:
Pilferage and Theft: Localized theft from coal sidings and unauthorized transportation by private contractors.
Quality Manipulation: Instances where high-grade coal was allegedly replaced with lower-grade material (shale) before reaching power plants.
Contractor Cartels: Allegations of favoritism in awarding stripping and transport contracts.
Currently, SCCL is grappling with a different set of challenges. Production has seen a sharp decline, dropping from a peak of 70.02 million tonnes in FY 2023–24 to roughly 58 million tonnes in FY 2025–26. This is attributed to:
Weather Disruptions: Prolonged monsoons severely affecting open-cast mining.
Market Competition: Consumers shifting toward Coal India Limited (CIL) or imports due to price and quality concerns.
Financial Dues of SCCL
The massive Rs 51,500 crore owed by the state government has crippled the company’s ability to invest in new technology or mine expansion. The management has recently held “open house” sessions, denying any theft and claiming that GPS-based geo-tagging and SAP systems prevent such large-scale diversion. However, the Union Minister’s intervention signals that the Centre is not satisfied with these internal assurances and is pushing for a more rigorous, external investigation to protect the interests of the company’s 40,000 employees.
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