‘YTPS to remain a burden on State forever due to lack of G9 grade quality coal in Singareni’
Sources in govt. say it would add a burden of ₹40K cr on coal transportation itself in its lifetime
The Yadadri Thermal Power Station (YTPS) in Nalgonda district, constructed by the previous BRS government, is proving to be a persistent financial burden on the state even before its completion. This is due to two primary reasons: firstly, the plant necessitates 14 million tonnes of G9 grade coal annually to operate at full capacity, but Singareni Coal Mines can only supply 4 million tonnes of G9 grade coal, which represents only a fraction of the average annual production of 60 million tonnes by the mines.
Secondly, the BRS government entered into a coal supply agreement with Singareni Collieries in 2022, but the company is unable to meet the required coal supply. The government had also barred Singareni from participating in the auction of coal blocks in the past. The ultra-supercritical thermal power station, initiated in 2015, faced delays and is yet to complete its construction, with the first two units not commissioned to date.
Experts argue that thermal power plants would be more economically viable if constructed close to coal mines to minimize transportation costs. However, YTPS is located 270 km away from the Singareni coal mines, which would incur an additional ₹40,000 crore cost in generation expenses over its 40-year operational period, effectively doubling the generation cost from the normal rate of ₹5 per unit.
The government is now exploring alternative sources for the required quality and quantity of coal, such as Mahanadi Coalfields or Coal India, following instructions from Chief Minister A. Revanth Reddy.
Written by urgent.news from The Hindu's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
