The Telangana government is actively strategizing to regain the mining rights for two crucial coal blocks, Sattupalli and Koyagudem. These blocks are strategically located adjacent to existing areas managed by Singareni Collieries Company Limited (SCCL), and their acquisition is deemed essential to supplement SCCL’s production as its current reserves are dwindling.
Chief Minister A. Revanth Reddy highlighted that SCCL was controversially prevented from participating in the auction for these significant coal blocks by the previous state administration. This decision, he stated, effectively forced the company to forfeit rights to blocks that are intrinsically linked to its operational areas. Such an outcome, the Chief Minister noted, is estimated to have caused a staggering revenue loss of ₹60,000 crore and a profit shortfall of ₹15,000 crore for the public sector mining company.
During a press conference in Hyderabad, held on Monday, September 22, 2025, the Chief Minister confirmed that the government has received numerous appeals from workers’ unions and other stakeholders, all expressing deep concern over the substantial losses faced by SCCL. He emphasized the state’s serious commitment to exploring various avenues to rectify this situation, posing questions like, “Should we revoke the previous tender awards? Or should we offer to pay more than the winning bid to persuade the Central Government to transfer these mining rights to our control?”
The state government is resolute in taking decisive action, warning that inaction would lead to further financial detriment for SCCL. Deputy Chief Minister Mallu Bhatti Vikramarka reiterated this stance, confirming that the government is earnestly weighing its options to reclaim the two vital mining blocks. He indicated that a formal representation would be made to the Central Government, detailing Telangana’s position and requesting its intervention to facilitate the transfer of mining rights to SCCL.
Shifting to broader issues concerning SCCL, Deputy Chief Minister Vikramarka has been tasked with engaging in discussions with worker unions and other key stakeholders regarding the company’s future expansion strategies. The Chief Minister expressed a strong desire for Singareni’s continued prosperity, asserting that with its extensive expertise, the company should be equipped to compete effectively with private and multinational entities, not just in coal mining but across various mineral extraction sectors.
Addressing inquiries about the impact of GST rate rationalization on coal prices, the Chief Minister acknowledged the challenging predicament facing the state. He noted that power distribution companies, already grappling with their own financial struggles, owe significant payments to SCCL. To mitigate the expected losses, the government is considering a policy of cross-subsidization. “We are working on several plans,” he stated, adding, “We intend to approach the Central Government for viability gap funding to compensate for the losses anticipated due to the GST rate adjustments.”
The Chief Minister projected a potential revenue loss of ₹7,000 crore for the state as a direct consequence of the GST rate rationalization. He stressed that since these losses stem from a Central Government decision, it is incumbent upon the Centre to provide the necessary viability gap funding, rather than leaving the state to bear the burden alone. He also mentioned that a formal communication detailing this request would be sent to the Union Minister of Coal and Mines, G. Kishan Reddy.