“YTPS will forever remain a burden on the state due to lack of quality G9 coal in Singareni”

HYDERABAD

The 5×800 MW Yadadri Thermal Power Plant (YTPS) at Dameracherla in Nalgonda district, which was taken over by the previous BRS government, turned out to be a major burden on the state even before its construction was completed, due to two reasons.

The power plant requires 14 million tonnes of G9 grade coal per year to operate at rated capacity, but the Singareni coal mines produce only 4 million tonnes of G9 grade coal out of an average annual production of 60 million tonnes.

The previous government ignored this critical component while setting up YTPS, government sources said. The BRS government has entered into a coal supply agreement with Singareni Collieries in 2022 and Singareni is unable to supply the required quantity.

There are agreements to supply quality coal to YTPS by taking over new greenfield coal mines in the country. But the previous government did not allow Singareni to participate in the auction of coal blocks.

The ultra-supercritical thermal power plant was taken over in 2015 with a plan to complete it within three years by awarding the construction contract to BHEL on a nomination basis. According to the original plan, the first two units were to be commissioned by October 2020 and the remaining three by October 2021. However, one unit has not been completed till date.

Sources in the government said thermal power plants would meet the energy needs properly and economically if set up near coal mines by reducing the cost of transporting coal. But its location is 270 km away from Singareni coal mines.

Transporting coal for the plant for its entire life of about 40 years would put an additional burden of ₹40,000 crore on production costs, the sources said, adding that this would double the cost of production from the normal cost of ₹5 per unit.

Now Govt/Genco is planning to get the required quality and quantity of coal from Mahanadi Coalfields or Coal India as directed by Chief Minister A. Revanth Reddy.

Published – 24 Sep 2026 23:39 IST