Harish Rao alleges more scams in Singareni, demands judicial or CBI probe

HYDERABAD

Senior leader of the Bharat Rashtra Samithi (BRS) and former minister T. Harish Rao has demanded a judicial inquiry into the large-scale irregularities, policy manipulation and financial losses in Singareni Collieries Company Ltd during the Revanth Reddy regime by a sitting judge or by CBI.

In a letter addressed to Union Minister of Coal G. Kishan Reddy on Friday, he stated that a series of grave and systematic irregularities were continuing in SCCL and they indicated a deep-rooted nexus involving political influence, manipulation of tendering processes, intimidation of officials and massive financial loss to the key State PSU.

He alleged that introduction of the site visit certification condition was arbitrary and against fair tendering norms as it appears deliberately designed to eliminate genuine competition and favour select politically connected bidders. The deliberate reversal of competitive outcomes had caused huge avoidable losses to SCCL as several tenders were awarded previously at (minus) -7% to -10% and in some cases -20% (bids lower than the estimates), but they were cancelled without any technical or financial default.

The works were later re-tendered with the new site visit condition and were awarded at +7% (excess) to +10% in stark contrast to national norms where the overburden tenders usually conclude at -10% to -22%, he explained.

The BRS leader alleged serious irregularities in tenders of 107 megawatt capacity solar power plants in SCCL, by rendering MSMEs ineligible to participate in tenders and making site visit certificate a condition. Against the national average of ₹3-4 crore per MW as solar power development costs, three contracts were awarded at ₹5.04 crore, resulting in excess burden of ₹200 to ₹250 crore.

Similarly, another 67 MW solar plant at Ramagundam was awarded at ₹7.16 crore per MW causing another ₹200 to ₹250 crore loss to SCCL. Together, the new solar power projects of Singareni amount to a loss of about ₹500 crore. In the matter of explosives supply contract, the finalised rates were 30% higher than those in Coal India. As Director G.V. Reddy refused to approve the inflated rates, he was allegedly forced to resign and another Director, N.V.K. Srinivas, who refused to sign the approvals, was demoted as General Manager.

There were irregularities in Prakasam Khani opencast and diesel procurement tenders. The opening of financial bids of Srirampur OB work was also postponed seven times, he pointed out and added that irregularities were also noticed in the Jaipur power plant tender.