“A ‘Coalgate” surfaced in Andhra Pradesh in which Andhra Pradesh government has imported huge quantity of coal from unknown countries at the higher rates fixed in 2013 when prices were on higher side. Even though the coal prices have fallen from $ 70 to $ 50 because of lack of demand globally. TDP government continued coal imports at the old rates causing huge loss to exchequer. In the process, about Rs 1000 crore have been pocketed by the Big Boss and Small Boss of Telugu Desam party.”

This is the charge leveled by Andhra Pradesh PCC president N Raghuvira Reddy on Sunday. According to Reddy, the coal was imported through two companies- Adani Group and Maheswari. Adani Groups is most favored company of Prime Minister Narendra Modi, he said.

Revealing the details of Coal Scam to media, Raghuvira Reddy said in 2013, to meet the demand of VTPS, KTPS and Rayalaseema Thermal plant, the then Congress government imported 12 lakh MTs of coal. As per the norms, the government can import 20 per cent more coal over and above the quantity specified in the contract. But, the TDP government continued the same old suppliers and old rates by renewing their contracts five times unmindful of the fall in the prices. Reddy, said the state government procured 20.25 lakh MTs that is 200 per cent more coal than that of specified in the contract. Even though the charges for the transportation of the coal to the sites of power plants was also included in the contract, TDP government had paid transport charges to tune of Rs 100 crore to these companies , he said

Raghuvira Reddy’s charges against the TDP government are:

1. State government paid $72 per ton when the prevailing price is just $ 50
2. Instead of inviting fresh bids for the supply of coal in changed global prices, TDP government renewed the old contracts with old rates which were signed when the prices were on higher side.
3. Contracts were renewed because Adanis are involved in the supply of coal. The groups is owned by a businessman close to Prime Minister Narendra Modi.
4. The principal beneficiaries of ‘Andhra Coalgate’ are chief minister Chandrababu Naidu and his party.
5. Tender norms have been modified to suit Adani Group.
6. This is all happened under the nose of chief minister Naidu, who is also the power minister.

The APCC president said government should place all the records related to the procurement of coal from abroad before a meeting of all parties. He said his party would launch a movement against the brazen corruption of TDP government in the state.