BRS leader Harish Rao alleges ‘major scams’ in SCCL solar power project

In a 11-point letter he wrote to Union Coal and Mines Minister G Kishan Reddy, the former minister demanded immediate action in the issue.
BRS leader T Harish Rao
BRS leader T Harish Rao (Express photo)
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HYDERABAD: Continuing to target the state government on the coal block tenders of the Singareni Collieries Company Limited (SCCL), BRS leader T Harish Rao on Friday alleged that “several major scams” took place in the 107 MW solar power project of Singareni.

In a 11-point letter he wrote to Union Coal and Mines Minister G Kishan Reddy, the former minister demanded immediate action in the issue.

Alleging that Chief Minister A Revanth Reddy’s brother-in-law has a role in Singareni irregularities, he said: “If the chief minister is honest, he should order an SIT probe against his brother-in-law Srujan Reddy.”

“Singareni has become Srujan gani (mine),” he added.

Speaking to reporters here, the Siddipet MLA said that instead of developing solar plants at three different sites, all were combined into a single 107 MW tender to reduce competition and prevent MSMEs from participating in the tender.

“A site visit certificate condition was deliberately added to favour select companies. This manipulation caused an additional burden of nearly `250 crore.”

Harish Rao said that the `540 crore tender was awarded to a “favoured” company, Gilty Power Limited. “Across the country, one megawatt of solar power costs around `3.5 crore, with land belonging to the developer. But in Singareni’s case, solar plants were being built on Singareni land, yet `5.04 crore per megawatt was being paid,” Harish Rao alleged.

“This resulted in nearly `200 crore additional loss to Singareni,” he alleged, adding that “this solar power scam occurred at Ramagundam”.

SCCL director demoted for refusing to sign file

The BRS leader also alleged another scam in the 67 MW solar power project. “Cost was fixed at around `7 crore per MW, which is almost double the national average. The `480 crore project was again awarded to a preferred company by modifying site visit conditions. Nearly `500 crore has changed hands through these two solar projects,” he alleged.

He also alleged irregularities in the purchase of gelatin sticks used for blasting operations, stating pressure was exerted to procure explosives at 30 per cent higher rates.

The BRS leader further claimed that Singareni Director VK Srinivas was demoted for refusing to sign the file.

Harish Rao alleged that a site visit certificate condition was imposed even in the Prakasham mine tender worth `1,044 crore. “If the site visit system is illegal, this tender must also be cancelled immediately,” he demanded.

Harish Rao said that `600 crore OB tender at Srirampur was postponed seven times. “The financial bid was delayed repeatedly because settlements were not finalised by the chief minister’s brother-in-law,” he alleged.

In his letter, he demanded that Kishan Reddy inquire why the tender was postponed seven times. The former minister pointed out that since the Revanth Reddy government assumed office, six OB contracts were issued under the site visit certificate system. “All such tenders must be cancelled immediately,” he said.

SCCL’s long-standing practice of procuring diesel directly from IOCL was discontinued and procurement was shifted to contractors, he alleged. This had increased project costs, imposed avoidable GST burdens and raised strong suspicions of commission-based policy manipulation, he said.

Irregularities in construction of thermal power plant

Harish Rao also alleged irregularities in the thermal power plant being constructed by Singareni at Jaipur and said details would be revealed soon.

He demanded that an inquiry be ordered either by a sitting high court judge or the CBI into the Singareni scams.

“If there is no hidden understanding between the Congress and BJP, all tenders must be cancelled and a full investigation must be conducted,” Harish Rao told Kishan Reddy.

Revanth Reddy is indulging in diversionary politics only to protect his brother-in-law Srujan Reddy from corruption allegations, he alleged while terming the SIT, probing the phone-tapping case, as Scripted Investigation Team.

Kishan to visit Kothagudem today

Union Coal and Mines Minister G Kishan Reddy will be visiting Kothagudem, part of the Singareni coal belt region, as part of his two-day tour starting from Saturday. He is likely to hold a review meeting with the higher officials and stakeholders of the Singareni Collieries Company Limited (SCCL).

His visit assumes significance amidst the row over Naini coal block tender notification and the events that led to its cancellation. It is pertinent to note that a two-member committee has already been constituted at the behest of Kishan Reddy. The Centre asked the committee to submit its report within three days.

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