Telangana Genco seeks 5 MT extra coal from CIL, MCL

Telangana Power Generation Corporation Ltd (TG-Genco) has asked the Ministry of Power to arrange an additional 5 million tonnes of coal supply from Coal India Ltd and Mahanadi Coalfields Ltd. The request…

Telangana Power Generation Corporation Ltd (TG-Genco) has asked the Ministry of Power to arrange an additional 5 million tonnes of coal supply from Coal India Ltd and Mahanadi Coalfields Ltd. The request follows chronic shortfalls in both quantity and quality from its primary supplier, Singareni Collieries Company Ltd (SCCL).

Telangana Genco seeks 5 MT extra coal from CIL, MCL

In a letter to the Power Secretary, TG-Genco Chairman S. Harish said SCCL has met only 76% of its committed 28.87-million-tonne annual linkage in 2025-26, and supplied the agreed grade of coal just 40% of the time. As a result, high-grade units at Kothagudem and Yadadri thermal plants are running at partial load. Ground stocks stand at only four days against the CEA norm of 26 days. The fifth unit of Yadadri is due to be commissioned next month, requiring about 50,000 tonnes of coal per day for all five units.

SCCL has told Genco it cannot supply high-grade coal for the two remaining Yadadri units, and suggested Genco seek long-term links from alternative sources. The Central Electricity Authority has backed the move to approach CIL and MCL for the additional supply.

Indian Opinion Analysis

The crisis at TG-Genco exposes a structural mismatch between the grade of coal SCCL can mine and the specifications of newer thermal units designed for higher-grade fuel. Under the Coal Distribution Policy of 2007, power plants with long-term linkages can seek alternative sources if the nominated coal company fails on grade or quantity. The CEA's 26-day stock norm, laid down in 2014, has been routinely breached across many states during peak summer months. With peak demand expected to cross 260 GW in coming months, the Coal Ministry's decision on this 5 MT allocation will determine whether Telangana avoids load-shedding. The outcome may also set a precedent for other states facing similar supply gaps from their captive coal companies.


Source: thehindu.com

This brief was synthesised by AI from the source linked above.

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