CM ready to probe into imported coal trade, leaves choice of question to KTR

Chief Minister A. Revanth Reddy and Deputy Chief Minister Mallu Batti Vikramarka in Hyderabad on Thursday.

Chief Minister A. Revanth Reddy has expressed his readiness to investigate the import of Grade 9 coal for Yadadri Thermal Power Plant in response to a letter written by BRS Working President KT Rama Rao.

He left the choice of the investigating agency, the Central Bureau of Investigation (CBI), the Enforcement Directorate (ED) or the Income Tax Department to Mr. Rao.

Mr. Reddy revealed that the BRS government has entered into agreements to import coal from abroad and has also written to the railway and Krishnapatnam port authorities for help in transportation. An agreement was signed with MSTC in 2016 to import seven million tonnes of coal per year for the Yadadri power plant, which required 14 million tonnes per year. The December 9, 2016 agreement specifically stipulated Class 9 coal to be imported, he said.

He showed documents to support his claims and claimed that the arrangement was aimed at phasing out Singareni Collieries Company Limited (SCCL) from supplying Class 9 coal to the Yadadri plant and increasing the share of imported coal from 50% to 100%.

Mr. Reddy alleged that the previous government had retained Singareni in 141 coal tenders and failed to take the opportunity to secure additional coal resources. Singareni only had about two million tonnes of Grade 9 coal available, he said. He alleged that the move was intended to benefit individuals who had invested money in a newspaper owned by the family of former Chief Minister K. Chandrasekhar Rao, claiming that ₹100 crore was invested.

The BRS government also moved the National Green Tribunal (NGT) to create a situation where the entire annual coal requirement of 14 million tonnes was to be met by imports. The Congress government held a public hearing in 2024 after which the stay was lifted, he said.

The chief minister questioned the cost escalation of the Yadadri supercritical thermal power plant project. An agreement was signed with Bharat Heavy Electricals Limited (BHEL) for ₹17,950 crore. The cost of the project subsequently increased by another ₹ 37,781 crore and the escalation of estimates by 110%, he claimed.

Comparing the cost of generation, Mr. Reddy said electricity is generated at ₹ 4.62 per unit in Manuguru, ₹ 3.94 in Kothagudem and ₹ 4.05 in Singareni Block 1 and 2 as against ₹ 6.60 in Yadadri as it was established outside the Singareni belt. This difference, he said, would be an additional burden of about ₹ 50,000 crore, with a cumulative impact of ₹ 1,00,000 crore over 25 years.

The Chief Minister said that the fifth unit of Yadadri power plant is yet to be completed. Meanwhile, the government has started supplying coal from the Naini block, with two to three rail rakes being transported daily to support power generation. He said he had spoken to Union Coal Minister G Kishan Reddy on Thursday to try to ensure that Yadadri runs exclusively on domestic coal.

Published – 15 Oct 2026 22:06 IST