Union Coal and Mines Minister G. Kishan Reddy has urged Telangana Genco to withdraw from the tendering process for the PKOC (Prakasam Khani Open Cast) Dip Side Extension project and allow the Singareni Collieries Company Limited (SCCL) to secure the block. He said he would also take up the matter with Chief Minister A. Revanth Reddy.Speaking to reporters in New Delhi on Monday, Mr. Reddy said the primary objective of including the PKOC block, located near Manuguru in Bhadradri Kothagudem district, in the auction process - was to benefit the SCCL. Labour unions had also appealed for the block to be secured for Singareni and urged stakeholders to participate in the bidding process with that objective.However, Telangana Genco entered the tender process, effectively competing with the SCCL, he said. Mr. Reddy noted that when the Tadicherla-1 captive coal block was allotted to TG Genco earlier, its mining operations were entrusted to private entities rather than the SCCL.The Minister said Naini block, Tadicherla-2, and the PKOC Dip Side Extension project would significantly strengthen Singareni’s future. Together, the three blocks are expected to generate employment for about 6,500 people and produce nearly 830 million tonnes of coal.According to him, extractable reserves are estimated at 340 million tonnes in Tadicherla-2, 455 million tonnes in the Naini block and 120 million tonnes in the PKOC Dip Side Extension. These projects could generate a turnover of about ₹1.95 lakh crore for the SCCL and profits of nearly ₹40,000 crore for the State government. Given these benefits, the PKOC block should be allocated to SCCL and steps must be taken to prevent it from going to TG Genco, he asserted.Describing the SCCL as South India’s largest coal producer, Mr. Reddy said successive State governments had treated the company like a “golden goose”. He alleged that while the previous BRS government failed to secure new coal blocks during its 10-year tenure, while the Congress government had not improved the situation over the past two-and-a-half years. As a result, he claimed, outstanding dues of around ₹54,000 crore had accumulated against the SCCL, making it one of the most heavily burdened public sector enterprises in the country. Published - July 27, 2026 07:36 pm IST