Kishan Reddy Urges State To Secure Koyagudem Block Three

28 Aug 2026 CW Team

He said the mine had been auctioned on two occasions and that the then-ruling Bharat Rashtra Samithi had prevented Singareni from participating, which allowed a private firm to secure it. As that firm failed to begin production, the block was reclaimed and reopened for allocation. Since taking office he has prioritised cutting wasteful expenditure, boosting output and securing coal allocations for Singareni.

An agreement has been finalised to supply coal from the Naini coal block in Odisha to the Yadadri power plant, and steps were taken to secure the Tadicherla-Two block for Singareni. The minister also pursued the PKOC Two open-cast dip-side block and said efforts were under way to acquire a further block. He noted that GENCO had bid for the Manuguru PKOC dip-side block and that intervention ensured allocation to Singareni.

He warned that Singareni faced severe financial strain, with salaries being met through overdrafts, and that securing new coal blocks was the only sustainable remedy. He urged the state to cut wasteful spending and to release the outstanding dues of Rs 550 billion (bn) owed to Singareni, saying the stance had not changed under the previous BRS administration or the current Congress government. Withholding revenue from coal, he added, would deprive workers of the fruits of their labour and weaken the company's viability.

He appealed for cooperation to secure the Manuguru dip-side block this time and called for prompt action to expedite settlement of dues. He argued that immediate relief and continued allocation of productive blocks were essential to restore output and stabilise finances.

Union Minister for Coal and Mines G Kishan Reddy sought cooperation from the Telangana government over Koyagudem Block Three in Bhadradri Kothagudem district, saying the private firm that had won the auction failed to commence production within the stipulated timeframe. The allocation was cancelled and the centre has pursued allocation to Singareni Collieries. The block holds the potential to yield 120 million tonnes (mn t) of Grade-13 coal. He said the mine had been auctioned on two occasions and that the then-ruling Bharat Rashtra Samithi had prevented Singareni from participating, which allowed a private firm to secure it. As that firm failed to begin production, the block was reclaimed and reopened for allocation. Since taking office he has prioritised cutting wasteful expenditure, boosting output and securing coal allocations for Singareni. An agreement has been finalised to supply coal from the Naini coal block in Odisha to the Yadadri power plant, and steps were taken to secure the Tadicherla-Two block for Singareni. The minister also pursued the PKOC Two open-cast dip-side block and said efforts were under way to acquire a further block. He noted that GENCO had bid for the Manuguru PKOC dip-side block and that intervention ensured allocation to Singareni. He warned that Singareni faced severe financial strain, with salaries being met through overdrafts, and that securing new coal blocks was the only sustainable remedy. He urged the state to cut wasteful spending and to release the outstanding dues of Rs 550 billion (bn) owed to Singareni, saying the stance had not changed under the previous BRS administration or the current Congress government. Withholding revenue from coal, he added, would deprive workers of the fruits of their labour and weaken the company's viability. He appealed for cooperation to secure the Manuguru dip-side block this time and called for prompt action to expedite settlement of dues. He argued that immediate relief and continued allocation of productive blocks were essential to restore output and stabilise finances.

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