Hyderabad: Amid the controversy surrounding the Naini coal block tenders at Singareni Collieries Company Limited, it has now emerged that a crucial tripartite agreement involving the Telangana govt, Union govt, and SCCL has not been in force since 2022, raising serious questions about governance and decision-making at the coal major.The earlier agreement—under which the Telangana govt held a 51% stake and the Centre 49%, along with clearly defined powers and responsibilities—was not renewed after it expired in 2022. Sources said the absence of a renewed pact has resulted in a communication gap on key policy and operational decisions, particularly at the level of the Singareni board. The issue came into sharp focus during a recent visit by a central committee to SCCL. Sources said the tripartite agreement, which is mandated to be renewed every five years, lays down the framework for decision-making on appointments, asset creation, investments, and other strategic matters. With the agreement lapsing in 2022, concerns were flagged internally. Centre, T govt mum“The issue was specifically discussed by the committee overseeing the tender process, including why the matter was not raised earlier,” sources said. Both the central and state govts, however, declined to comment on the current status of the agreement. SCCL functions as a joint venture between the Telangana govt, which holds a 51% equity stake, and the Union govt, which holds the remaining 49%. While the state govt appoints the chairman and managing director with prior approval from the Centre, the company’s Board comprises seven directors nominated by the state and three by the Centre. The tripartite agreement also governs critical operational aspects. It provides for the grant of mining leases to SCCL in coal-bearing areas of the Godavari Valley Coalfield, and mandates central govt support in recovering outstanding coal dues from public sector undertakings. In coordination with the state govt, the Centre also facilitates statutory clearances for major projects.No bearing on NainiImportantly, SCCL is required to obtain govt approvals for its annual plans and for mining or power projects involving capital expenditure exceeding ₹500 crore—making the agreement central to the company’s functioning. Sources clarified that while the absence of the agreement has no direct bearing on the Naini coal block, the Centre may push for an early renewal of the pact in the wake of recent developments.
