The Hindu : Andhra Pradesh News : Tadicherla coal mine tender to be suspended

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Wednesday, Feb 10, 2010
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Andhra Pradesh

Andhra Pradesh

Tadicherla coal mine tender to be suspended

Special Correspondent

HYDERABAD: Government has agreed to suspend the tender process to give Tadicherla captive coal mine in Karimnagar district to private operators, according to Higher Education Minister D. Sridhar Babu.

Mr. Sridhar Babu who is Manthani MLA, MP G. Vivekanand, senior INTUC leader and MLC B. Venkat Rao met Chief Minister K. Rosaiah on Tuesday and said that coal mining tender should be given to the public sector Singareni Collieries Company Ltd, or it should be taken up as a joint venture with any other public sector company. The SCCL workers union leaders also opposed privatisation move, they said.

Mr. Vivekanand said that the MPs from Telangana had written to the Chief Minister and also Union Government against privatisation of Tadicherla coal mine in Karimnagar.

SCCL not involved

Mr. Venkat Rao said that Tadicherla was allotted as captive mine to AP Genco and the latter without involving SCCL, invited tenders from private companies for coal mining contract worth Rs.5,000 crore.

“We suggested to the Chief Minister that the contract should be given to SCCL by involving AP Genco as its joint venture partner. He agreed to consider our suggestion,” he added.

Meanwhile Centre of Indian Trade Unions (CITU) State Committee said the State Government’s move to privatise Tadicherla coal mine would result in loss to both SCCL and AP Genco.

While Singareni company would incur Rs.1000 per tonne of coal mining, AP Genco would pay Rs.2,500 per tonne to the private player as per the tender agreement.

It alleged that corruption involving crores of rupees was behind the decision to give the contract to a private company and demanded that Tadicherla coal mining be entrusted to SCCL.

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