Chief Minister N Kiran Kumar Reddy on Friday admitted that good quality coal mined from Sattupalli Open Cast Mine of Singareni Colleries was sold by categorising it inferior quality coal during Sakala Janula Samme (September - October 2011).
In his reply to a question raised by TDP members Thummala Nageswara Rao and S Venkata Veeraiah, the Chief Minister said that the Singareni Collieries has sustained a loss of Rs 27 lakh due to sale of 3,000 tonnes of "D" grade coal as "F" grade coal. He said Vigilance enquiry was conducted and based on the report, the Project Officer of Sattupalli OCP was transferred immediately and further issue of "F" grade coal through pithead was discontinued.
The Chief Minister said that regular departmental enquiry against the responsible person has also been initiated.