CM Revanth seeks Rs 7,000 crore GST compensation from Centre, announces Singareni bonus

Hyderabad: Chief Minister A Revanth Reddy has demanded that the Union government compensate for the revenue loss of Rs 7,000 crore to Telangana with the introduction of the new GST structure of rate rationalisation.

Declaring the profit share bonus to Singareni Employees on Monday, the Chief Minister said that the GST rate rationalisation will hurt the State revenues.

The deputy chief minister also said that the State is planning to open up research in the area for more minerals.

‘Centre should help State’s burden’

“The Centre should come to the rescue of the States which bear the brunt of the new GST structure. We are demanding that the Centre address the concerns raised by the Telangana State on losing revenues after the introduction of the GST rate rationalisation.”

Issue of private partnership

Announcing that the State government will also give ‘Diwali Bonus’ to Singareni employees, CM Revanth Reddy said that the State government will pursue the Union government to address the issue of increasing private partnership in the Singareni company.

The role of private partnership posed a big threat to the existence of India’s prestigious Singareni Colleries Company Limited. CM Revanth said that the Singareni workers have requested to resume coal mines awarded to private agencies.

Exploration for more minerals

Deputy chief minister Bhatti Vikramarka outlined the details of the bonus for 71,000 workers and said that there will be exploration for more minerals.

“The Telangana government is committed to the welfare of the Singareni employees and promotes the Singareni company as a profit-making company in the future,” the Chief Minister assured.

Remembering the unwavering support of the Singareni employees during the Telangana movement, the Chief Minister said that the People’s Government recognised the services of the Singareni workers who played a significant role in the achievement of Statehood for Telangana.

Out of the Rs 6,394 crore income, the Chief Minister said that Rs 4,034 crore will be utilised for investments. As much as Rs 819 crore (34% of the profits) has been given as a bonus to the Singareni employees this year. Bonus for the contract employees has also been enhanced to Rs 5,500 from Rs 5,000.

CM Revanth reiterated that the government will promote Singareni as a competent company on par with the corporate industry. The Chief Minister praised the Singareni workers for working hard to earn more profits every year. Since the Singareni company was earning profits, the government decided to share the profits with the workers every year.

Bhatti announces bonus

Deputy Chief Minister Bhatti Vikramarka announced the bonus. Key points are:

• 41,000 permanent workers will each receive Rs 1,95,610.

• 30,000 contract workers will each receive Rs 5,500 (a first in Singareni’s history for contract workers).

• Contract workers to receive Rs 5,500 each.

• Efforts to recover lost coal blocks: The government is working to reclaim two coal blocks lost during the previous government’s tenure.

• Singareni to venture into critical minerals mining: In addition to coal, Singareni will expand into critical minerals mining.

Financial overview

After taxes, Singareni’s profit is Rs 6,394 crore.

Of this, Rs 4,034 crore is allocated for expansion, leaving a net profit of Rs 2,360 crore. The State government has decided to distribute 34 per cent of this net profit as a Dussehra bonus for workers.

New mining ventures

Singareni has secured tenders for copper and gold mining in Karnataka. It will conduct exploration and excavation to assess reserves. In the future, entities acquiring these mines will pay Singareni a 35 per cent royalty for the mine’s lifespan.