This is a really wonderful news for Telangana people. The 51% share of AP Government in Singareni Collieries would be transferred to Telangana government as soon as the state is formed. The GoM has recommended that the share of AP government be transferred to Telangana government in the draft bill it had submitted to Union Cabinet yesterday.
It is estimated that Singareni has 22207 million tonnes of coal reserves. About 20% of India’s coal reserves are located in Singareni. The mines are spread over 4 districts in Telangana. These mines would be a huge growth engine for the new Telangana state, by providing the much needed coal for power generation. The economic contribution of Singareni to state exchequer is also substantial.
Telangana activists have long been demanding that Singareni Collieries should rightfully belong to Telangana. Several Seemandhra leaders, including CM Kiran Kumar Reddy conspired to grab a share in Singareni Collieries for residual Andhra Pradesh state. They submitted memorandums to GoM and Union Government with a demand for a share in Singareni Collieries.
However, the GoM has decided to allot Singareni share to the rightful owner – viz Telangana state.
Coal was discovered at Singareni by Dr King of Geological Survey of India in 1871. In 1886, the Hyderabad (DEccan) Company Limited was incorporated to mine coal.
The Singareni Collieries Company was established in 1920, and the Hyderabad State Government bought majority shares in the company in 1945.
When Telangana region was merged in Andhra Pradesh state, the Singareni Collieries became the property of AP.
In 1960, the Union Government picked up 49% share in Singareni Collieries.
Naturally, when Telangana is demerging from AP, the Union Government is transferring the AP Government’s 51% shares to Telangana Government.