‘YTPS to remain a burden on State forever due to lack of G9 grade quality coal in Singareni’

HYDERABAD

The 5×800 megawatt Yadadri Thermal Power Station (YTPS) taken up at Dameracherla in Nalgonda district by the previous BRS government has been proving to be a heavy burden on the State even before completion of its construction for two reasons.

The power plant requires 14 million tonnes of G9 grade coal annually for its operation at the rated capacity but the Singareni coal mines produces only 4 million tonnes of G9 grade out of the average annual production of 60 million tonnes.

The previous government ignored this critical component while establishing the YTPS, government sources argue. The BRS government had entered into the coal supply agreement with Singareni Collieries in 2022, and Singareni is not in a position to supply the required quantities.

There are agreements to supply quality coal to YTPS by taking new green field coal mines in the country. However, the previous government did not allow Singareni to participate in the auction of coal blocks.

The ultra-supercritical thermal power station was taken up in 2015 with a plan to complete it in three years by handing over its construction contract to BHEL on a nomination basis. As per the initial plan, the first two units were supposed to be commissioned by October 2020 and the remaining three by October 2021. However, one unit is yet to be completed till date.

Sources in the government stated that thermal power plants would meet the energy needs properly and economically if they are established near the coal mines by reducing the coal transportation expenditure. But its location is 270 km away from the Singareni coal mines.

The transportation of coal for the plant for its lifetime, about 40 years, would have an additional burden of ₹40,000 crore on the generation cost, the sources said, adding that the cost of generation would be doubled due to it from the normal cost of ₹5 per unit.

Now, the government/Genco is planning to source the required quality and quantity of coal from Mahanadi Coalfields or Coal India, following instructions from Chief Minister A. Revanth Reddy.