Telangana Government is exploring ways to secure mining rights of two coal blocks adjoining the blocks under Singareni Collieries Company Limited (SCCL), so that the two blocks will complement the production of SCCL whose reserves are depleting over a period.

Chief Minister A. Revanth Reddy said the SCCL was not allowed to compete in auction conducted for major coal blocks at Sattupalli and Koyagudem during the previous Government and has to forego rights on the blocks which lay amidst SCCL’s blocks. As a result, it was projected that the company incurred revenue loss of ₹60,000 crore and lose a profit of ₹15,000 crore.

The Chief Minister said representations were received from the workers’ unions and other stakeholders over the losses incurred by the public sector miner and the Government was seriously exploring the options before it. “Shall we scrap the previous tenders? Or shall we pay more than the bid amount to convince the Central Government to handover the mining rights of the two blocks?” the Chief Minister asked at a press conference held in Hyderabad on Monday (September 22, 2025).

He said the Government was firm on initiating action into the issue or else SCCL would face losses in future. Deputy Chief Minister Mallu Bhatti Vikramarka said the Government was seriously considering the options to resume the two mining blocks. The matter would be represented to the Central Government explaining about the State’s stand seeking its intervention in handing over mining rights of the two blocks to SCCL.

Referring to other issues, he said Deputy Chief Minister Mallu Bhatti Vikramarka had been asked to hold discussions with the representatives of workers’ unions and other stakeholders of SCCL regarding its expansion plans. “We want Singareni to survive. Given its vast experience, the firm should compete with private sector including multinationals in mining of not just coal but also other minerals,” he said.

Replying to queries on drop in coal prices on account of GST rate rationalisation, he said the State was facing a piquant situation when it comes to the issue. “Power distribution companies owe payments to SCCL at a time they themselves are facing tough time in terms of finances,” he said. The Government was accordingly considering cross subsidisation to overcome the losses likely to be incurred by the State. “Several plans are being worked out. We will request the Central Government to provide viability gap funding to bridge the losses that are likely on account of the GST rate rationalisation,” he said.

The State was expected to face ₹7,000 crore loss in revenue collection on account of GST rate rationalisation. “The Central Government has to provide viability gap Funding as the losses are on account of its decision. They cannot leave the State to fend the losses by itself like that,” he averred.

The State Government would address a communication to the Centre regarding this seeking provision of viability gap funding. He said that it could send a communication to Union Minister of Coal and Mines G. Kishan Reddy.