Telangana seeks 5 million tonnes coal as Singareni fails to meet power plant demands

Telangana Power Generation Corporation has formally approached the Ministry of Power to approve an additional 5 million tonnes of coal from Coal India Ltd and Mahanadi Coalfields Ltd after its primary supplier, Singareni Collieries, failed to meet both quality and quantity commitments.

SCCL delivers only 40% of contracted grade

In a recent letter to the Power Ministry Secretary, TG-Genco Chairman S. Harish revealed that linkage materialisation from SCCL stands at just 76%, while delivery of fuel supply agreement-grade coal has plummeted to around 40% in 2025-26. The state utility holds long-term coal linkage of 28.87 million tonnes per annum with Singareni for all its thermal stations.

The shortfall has hit generation hardest at units designed for higher-grade G9/G10 coal, the 500 MW and 800 MW units at Kothagudem Thermal Power Station Stage VI and VII, and the 5x800 MW Yadadri Thermal Power Station, four of whose units are already operational. These plants are now forced to run at partial loads.

Fifth YTPS unit due next month, needs 50,000 tonnes daily

The fifth unit of Yadadri Thermal Power Station is scheduled for commissioning next month, pushing the plant's daily coal requirement to approximately 50,000 tonnes once all five units are in operation. But SCCL has already informed TG-Genco it cannot supply higher-grade coal to match demand and can cater only to three YTPS units under long-term arrangements. The colliery has advised Genco to secure linkages from alternative sources such as Coal India Ltd to ensure assured availability and reduce dependence on SCCL's limited high-grade reserves.

Stock levels fall short of CEA norms

Ground stocks at Genco's thermal stations are sufficient for only four days, with replenishment arriving in limited measure, far below the Central Electricity Authority norm of maintaining at least 26 days of inventory. With anticipated peak power demand likely to exceed 260 gigawatts in the coming months, coal-based thermal units would need to operate at rated capacity to meet the surge. After being briefed on the crisis, the CEA suggested Genco approach CIL and Mahanadi Coalfields for the additional 5 million tonnes.

Source: The Hindu