Centre Seeks Probe into Alleged Disappearance of 40 Lakh Tonnes of Coal from SCCL
Jointly owned by Telangana and the Centre through the Ministry of Coal, SCCL operates 40 mines—including 18 opencast and 22 underground mines—across six districts of Telangana and four districts of Andhra Pradesh
Union Coal Minister G. Kishan Reddy has urged the Telangana government to conduct an immediate inquiry into reports alleging that nearly 40 lakh tonnes of coal worth approximately ₹1,600 crore has gone missing from Singareni Collieries Company Limited (SCCL), raising concerns about the financial health and governance of the state-owned mining giant.
In a letter dated June 10 to Telangana Chief Minister A. Revanth Reddy, the Union Minister referred to media reports highlighting the alleged disappearance of coal stocks, which, if found to be true, could result in substantial financial losses for the company.
SCCL, one of India’s largest coal producers, is jointly owned by the Telangana government and the Centre, with equity holdings of 51 percent and 49 percent respectively. The company plays a crucial role in supplying coal to thermal power plants and various industries across the country.
Expressing concern over the reports, Reddy noted that SCCL is already facing financial pressures due to unpaid dues exceeding ₹51,500 crore from the Telangana government. He warned that allegations of missing coal stocks could further weaken the company’s financial stability and affect its long-term sustainability.
"Such allegations, if not examined with urgency and addressed promptly, may undermine SCCL's financial position and impede its future growth and sustainability," the minister stated in his communication to the Chief Minister.
The Union Minister called for a comprehensive assessment to determine whether the reported irregularities have any basis in fact. He also emphasized the need to review the company’s existing safeguards, monitoring systems, and internal controls to ensure effective management and accountability.
To strengthen oversight, Reddy recommended the adoption of technology-based monitoring tools, periodic audits, and regular reviews to identify operational weaknesses at an early stage. According to him, these measures would help prevent recurrence of similar issues, improve transparency, and enhance the credibility of the company.
The minister further sought the Chief Minister’s personal intervention to ensure the smooth functioning of SCCL and safeguard the interests of thousands of employees and stakeholders dependent on the company’s operations.
As of now, no official investigation report has confirmed the alleged disappearance of coal. The matter remains under scrutiny, and the Telangana government is expected to examine the allegations and determine the appropriate course of action.
The controversy has drawn significant attention given SCCL’s strategic importance to the country’s energy sector and its role as a major contributor to Telangana’s economy.
