Singareni’s short-supply of quality, quantity coal forces Genco to seek 5 MT supply from CIL, MCL
CMD of TG-Genco writes to Ministry of Power for supply of coal to run its thermal stations at rated capacities
The Telangana Power Generation Corporation Ltd (TG-Genco) has requested the Ministry of Power for an additional supply of 5 million tonnes of coal to their thermal generation stations, following the approval of the Ministry of Coal. In a recent communication, TG-Genco's Chairman and Managing Director, S. Harish, informed that all their thermal generating stations have a long-term coal linkage of 28.87 million tonnes per annum with Singareni Collieries Company Ltd (SCCL).
However, the 500 megawatt and 800 MW units of Kothagudem Thermal Power Station Stage VI and VII, and the 5x800 MW Yadadri Thermal Power Station, whose four units are already generating, require higher-grade (G9/G10) coal for optimal performance.
Due to the inadequate supply of higher-grade coal, these units are currently operating at partial loads, which significantly impacts their generation capacity. With the anticipated peak power demand expected to reach over 260 gigawatt in the coming months, TG-Genco's thermal units will need to operate at their rated capacities to meet this increased demand.
Moreover, the commercial operation of the fifth unit of Yadadri Thermal Power Station (YTPS) is scheduled for the following month, and the operation of all five units will necessitate approximately 50,000 tonnes of coal per day.
Harish highlighted that the linkage with SCCL is only 76% materialized, and the quality of fuel supplied under the Fuel Supply Agreement (FSA) grade coal is around 40% in 2025-26. Consequently, the generation at Genco's stations is severely affected due to the shortage in both quality and quantity of coal. SCCL has informed TG-Genco that they are unable to supply the required higher-grade coal as per the FSA; instead, they can only cater to the coal needs of three units of YTPS in the long term.
For the remaining two units of YTPS, SCCL has suggested that Genco should seek coal linkages from alternative sources, such as Coal India Ltd (CIL) or Mahanadi Coalfields Ltd (MCL), through long-term linkages to ensure a stable supply of higher-grade coal and reduce dependence on SCCL's limited high-grade coal resources.
Currently, TG-Genco's thermal power stations have sufficient ground stocks to last only for four days, with replenishment being limited. This situation falls short of the Central Electricity Authority's (CEA) norms, which recommend maintaining ground stocks for at least 26 days. The CEA had briefed TG-Genco about the situation and subsequently recommended exploring the possibility of obtaining an additional 5 million tonnes of coal from CIL and MCL to address the coal shortage at Genco's thermal power stations.
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