Major coal scam busted at Singareni Collieries in Andhra Pradesh

Hyderabad: A vigilance and enforcement department probe into allegations that coal drawn from Singareni Collieries Ltd, worth crores of rupees, is diverted into the open market by agents and mediators, has found several irregularities.

In a report to the government, the vigilance department said that the industries department must conduct surprise inspection of firms to curb the diversion of coal in collaboration with SCCL authorities. It also asked for periodical verification to ensure that firms permitted to buy coal from SCCL are utilising the facility properly.

The vigilance department obtained the list of units recommended for allotment of coal by the District Industries Centre and list of various industrial units to whom coal was allotted by SCCL in Krishna district. A team of vigilance officials verified the coal registers and invoice-cum-delivery challans received from SCCL given to industries in Ibrahimpatnam, G Konduru, Jaggaiahpet, Vijayawada Rural and Gannavaram mandals.

Vigilance and enforcement director general R.P. Thakur confirmed that the report regarding the irregularities in the diversion of coal has been submitted to the government.

The records of the following companies were checked: Krishna Synthon at Kondapalli, Sri Kanak Durga Chormates at Loya, Sri Sai Organics at Kodapalli, Centaurus Pharma at Kondapalli, Asritha Paper Mill at Gowravaram, Model Milk Products at Nidamanuru, Hemadri Cements at Vedadri, Model Dairy at Nidamanuru, SPL Agro Industries at Gannavaram, Amoda Iron and Steels at Jayanthipuram and Mahalakshmi Industries in Tempalli. The companies were found to be not maintaining the coal registers properly and not updating them regularly.

“Consumption particulars of coal received from SCCL is not maintained separately either batch wise or month wise for verification. The industries are not furnishing their records to DIC authorities and not obtaining counter signatures of the inspecting authorities. The authorities of industries department said that they are using fire wood most of the time due to delay in getting coal from SCCL,” said a vigilance official.
Vigilance also found fault with DIC authorities for not conducting periodical checks.

“SCCL is conducting sale of coal through e-procurement on open bidding. Private coal merchants are purchasing coal from SCCL through e-procurement basis and maintain stocks in their private yards. Due to abnormal delay in getting supply of coal of SCCL the industries and user agencies have been purchasing coal from these private coal vendors. Industrial units are engaging some agents in getting deliver from the SCCL due to the uncertainty in deliveries made by SCCL. There is no check and monitoring on these agents,” Vigilance said in the report.

Officials of the Pollution Control Board and Inspector of Boilers are also not verifying whether the companies have utilised the permitted coal properly, and are focusing only on pollution control aspects and fitness of boilers.