Telangana coal imports have come under a political and procurement transparency challenge after BRS working president KT Rama Rao demanded an independent probe into the proposed arrangements and called for all related documents to be made public.
In an open letter addressed on Thursday to Chief Minister Revanth Reddy, Deputy Chief Minister Mallu Bhatti Vikramarka and Union Coal Minister G. Kishan Reddy, Rama Rao sought a white paper on foreign coal procurement, disclosure of logistics-related dealings and a detailed account of Singareni Collieries Company Limited’s production and outstanding dues.
Rama Rao alleged that the state government was creating conditions for a coal and power crisis to facilitate what he described as a potential ₹3,000 crore scam through foreign coal imports. He also alleged that the proposed arrangement could involve commissions of ₹1,500 per tonne and questioned the basis for considering a private logistics company for the assignment.
The allegations relate to a proposal that, according to the report, has not yet resulted in coal imports. Rama Rao said decisions should not advance until discussions, tender documents, draft agreements, pricing details and the process used to select the logistics firm are disclosed. The demands place the proposed procurement under scrutiny before any foreign coal supply arrangement is finalised.
The BRS leader also questioned the reported fall in Singareni’s coal production from approximately 70 million tonnes in 2023–24 to around 58 million tonnes in 2025–26. He sought an explanation for the decline and asked why domestic production, mine development and coal availability had not been strengthened despite rising electricity demand.
Singareni’s finances formed another part of the letter. Rama Rao sought an institution-wise account of approximately ₹60,000 crore in outstanding dues reportedly owed to the company, including amounts due, payments received and liabilities that remain pending. The demand links the proposed imports to a wider question over the financial health and operating capacity of the state-owned coal producer.
Rama Rao referred to Yadadri Thermal Power Station, citing 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 imports were considered. He also sought transparency over contracts for coal and ash-handling operations at Yadadri and questioned the reported outsourcing of work despite expertise within state power utilities.
The letter further criticised the Union coal minister over what Rama Rao described as a failure to protect Singareni’s interests. He said the BRS would oppose any move that weakened the company, undermined domestic coal resources or imposed what he called an unnecessary financial burden on Telangana.
The immediate next steps sought by Rama Rao are an independent investigation, publication of the proposed import and logistics documents, a white paper on foreign coal procurement, and disclosure of Singareni’s production and dues position. The supplied report does not include a response from the Telangana government, the Union coal ministry, Singareni or the private logistics company mentioned in the allegations.
