Centre has never controlled Singareni operations, says Union Minister Kishan Reddy

Hyderabad: Union Minister G. Kishan Reddy on Thursday stated that the Central government has never exercised direct control over the Singareni Collieries Company Limited (SCCL), either during the Congress era or under the current NDA government. He clarified that the Centre has not intervened in the company’s day‑to‑day operations.

Addressing the media at the BJP state headquarters, Reddy said Singareni has contributed significantly to Telangana’s development. “The company operates across nearly eight districts and has a history of over 136 years,” he noted. He also recalled his visits to Singareni areas during the Telangana statehood movement.

Governance structure places control with Telangana

Reddy explained that Telangana holds a 51% stake in SCCL, while the Centre holds 49%. However, he emphasised that the company has functioned under the state government’s control for many years. “The Central government does not manage or direct its operations,” the minister said. He pointed out that the company’s board has 10 directors—seven nominated by the state, two by the Centre, and one from Western Coalfields. “All major decisions are taken by the board. The Centre is not involved in routine matters, including tenders,” he added.

The minister claimed that SCCL’s financial position weakened after Telangana’s formation. “Once a profitable enterprise, its expenses increased while revenues declined,” he said, adding that financial deterioration continued under both the BRS government and, more recently, the Congress regime.

Centre took steps to review finances

After becoming Coal Minister about 18 months ago, Reddy said, the Centre set up a committee to study cost‑reduction measures for Singareni. “We prepared a detailed report after reviewing the company’s financial condition with officials. These issues were placed before the board,” he said. He clarified that discussions at that time did not involve the Naini coal block issue.

Reddy also alleged political interference during the decade of BRS rule. He claimed the KCR family wielded complete influence over the company’s decisions. “From tenders to minor contracts, decisions were dictated by those in power. Corporate social responsibility (CSR) funds were used on items like office sofas and swimming pools for BRS MLAs, and resources were diverted to their constituencies,” he alleged.

Debt burden rose, technology stalled

The minister said Singareni’s debt burden increased significantly under the BRS, with the state government accumulating arrears nearing ₹32,000 crore. “This financial crunch has prevented the introduction of new technology,” he said, warning that outdated machinery has increased the physical burden on workers.