K.T. Rama Rao has alleged that Telangana’s proposed coal imports could enable a Rs 3,000 crore scam, but the reported imports have not yet taken place and the claim requires independent verification. In an open letter, the BRS working president demanded that the state government scrap the proposal, disclose related agreements and order an investigation.
Rama Rao addressed the letter to Chief Minister A. Revanth Reddy, Deputy Chief Minister Mallu Bhatti Vikramarka and Union Coal Minister G. Kishan Reddy. He alleged that the Congress government was creating conditions for a power crisis to facilitate expensive foreign coal imports through a private company identified by him as Bhotra Logistics.
The allegations centre on the role of Singareni Collieries Company Limited, the Telangana-based coal producer. Rama Rao claimed that the state was weakening Singareni while considering a private arrangement for imported coal. He alleged that the proposed deal could involve commissions of Rs 1,500 per tonne, which he said could translate into a potential Rs 3,000 crore scam.
The supplied report does not establish that such commissions were agreed, paid or formally included in a contract. It also does not provide the government’s response to the allegations, the terms of the proposed arrangement or an official document confirming the identity and role of the private company.
Rama Rao also questioned a reported decline in Singareni’s coal production, citing a fall from approximately 70.02 million tonnes in 2023–24 to around 58 million tonnes in 2025–26. The report does not specify whether the latter figure is a final production figure, a target or a partial-year estimate, nor does it provide an official production statement for comparison.
He sought an institution-wise account of approximately Rs 60,000 crore in outstanding dues reportedly owed to Singareni by various departments. The report does not identify the departments, the age of the dues or the accounting basis for the amount.
The Yadadri Thermal Power Station was another focus of the letter. Rama Rao cited a reported allocation of 14 million tonnes per annum of G9-grade coal from Singareni mines and a supply agreement signed in April 2022. He questioned why domestic supply concerns were not being resolved before foreign coal imports were considered.
The dispute highlights the administrative questions that would need to be answered before the allegation can be assessed: whether an import proposal has been formally approved, which agency or company would procure the coal, what price and commission structure would apply, and whether domestic coal supply is contractually sufficient for Yadadri and other plants. None of those details is established in the supplied report.
An independent investigation, release of the relevant agreements and responses from the Telangana government, Singareni Collieries and the Union coal ministry would be necessary to verify the claims. Until those records or official findings are available, the reported Rs 3,000 crore figure remains an allegation rather than an established loss or scam.
