KTR has accused Telangana’s ruling Congress and the BJP of engineering a coal and power shortage to justify foreign coal imports in a deal he says could siphon off as much as Rs 3,000 crore in commissions.
Telangana coal import row over Rs 3,000 crore deal
The allegation lands at a sensitive moment for India’s coal and power supply chain, where thermal fuel availability shapes electricity costs, plant operations and state procurement budgets. If foreign imports are used despite domestic supply from Singareni Collieries, the economic hit would run beyond political optics and into higher generation costs, larger fiscal outlays and pressure on power tariffs.
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The BRS working president said the alleged plan centers on a commission of Rs 1,500 a tonne and questioned the role of Brotha Logistics, demanding details of contracts, tenders and payments. He also sought a response from Chief Minister Revanth Reddy, Union Minister Kishan Reddy and Deputy Chief Minister Bhatti Vikramarka, signaling the row could escalate into a formal political and administrative probe.
For investors, the issue matters because coal procurement decisions affect not just state finances but also the demand mix for miners, logistics firms and power producers tied to Telangana’s generation network. Any shift toward imported coal can squeeze domestic suppliers such as Singareni, while boosting volatility in supply contracts and raising scrutiny of counterparties involved in transport and trading.
The broader market backdrop is already fraught, with Brent crude around $102.5 a barrel and global stability sentiment weak, conditions that can magnify the cost of imported fuel. The next catalyst is whether the state government releases contract documents or opens an inquiry, which could quickly turn this from a political charge into a procurement and governance risk for the coal supply chain.
| Entity | Gains | Losses |
|---|---|---|
| Import-linked traders/logistics firms | ▲Higher contract volumes | ▼Anti-graft scrutiny |
| Singareni Collieries | ▲None if imports grow | ▼Domestic offtake pressure |
| Telangana government | ▲Possible short-term coal cover | ▼Fiscal and political damage |
| Power consumers/investors | ▲Better transparency if probed | ▼Higher fuel and tariff risk |
