The Singareni Collieries Company Limited (SCCL) has decided to withdraw the tender notification for the Naini coal mine in Odisha, following allegations of irregularities in the bidding process. The decision was announced after Deputy Chief Minister Bhatti Vikramarka highlighted concerns over the tender procedure. Bids, which were scheduled to open at 5 PM on the day of the announcement, have been postponed due to administrative reasons, according to SCCL. The central coal ministry had previously questioned the SCCL board on why guidelines were not thoroughly reviewed before floating the tender, with Joint Secretary Sanjay Kumar questioning delays in issuing site visit certificates to prospective bidders.
Tender Background and Controversy
The Naini coal mine, located in Angul district of Odisha, was allocated to SCCL under coal linkage arrangements. According to SCCL norms, companies intending to participate in the tender must visit the site and obtain certification from SCCL. This requirement drew criticism and allegations of favoritism, prompting the state government to halt the tender process. The original tender, valued at ₹1,604.42 crore for a 25-year contract, covered overburden removal, coal extraction, and transportation to Coal Handling Plants (CHP-1, 2, and 3). While tenders generally evaluate technical expertise, financial capacity, and prior experience, the unusual mandate of mandatory site visits and certification became a major point of dispute. The government has directed SCCL officials to review practices in other public sector coal companies before reissuing tenders.
Political Response and Call for CBI Probe
The BRS party has raised serious concerns over the matter. Former minister and MLA Harish Rao alleged widespread irregularities in the Naini coal tender process, claiming collusion within the state government. He demanded a CBI investigation into the tenders, emphasizing that if no secret deals exist between the state government and the BJP, an independent probe should be conducted. Rao pointed out that the central government holds a 49% stake in SCCL and urged Coal and Mines Minister Kishan Reddy to initiate the investigation immediately. He further stated his willingness to provide all evidence in his possession to support the inquiry.