Facing a severe shortfall in high-grade coal from SCCL, TG-Genco has approached the Ministry of Power to secure 5 MT of additional coal from CIL and MCL to maintain thermal station capacities.

  • SCCL coal linkage realization is only 76% in quantity and 40% in quality.
  • TG-Genco has requested the Ministry of Power for 5 MT of additional coal from CIL and MCL.
  • Current coal stocks at thermal stations are only sufficient for 4 days, far below the CEA-mandated 26 days.

The Telangana Power Generation Corporation Ltd (TG-Genco) is navigating a critical energy supply challenge. In a recent communication to the Ministry of Power (MoP), TG-Genco's Chairman and Managing Director, S. Harish, requested an additional supply of 5 million tonnes of coal from Coal India Ltd (CIL) and Mahanadi Coalfields Ltd (MCL).

The Quality and Quantity Crisis

While TG-Genco maintains a long-term coal linkage with Singareni Collieries Company Ltd (SCCL) of 28.87 million tonnes per annum, the actual supply has fallen short of requirements. For the 2025-26 period, the quantity realization from SCCL stands at a mere 76%, while the supply of high-grade (G9/G10) coal—essential for modern thermal units—has plummeted to just 40%.

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This deficit is directly impacting the performance of major facilities, including the Kothagudem Thermal Power Station and the Yadadri Thermal Power Station (YTPS). These units are engineered to run on high-grade coal; however, the lack of quality fuel has forced them to operate at partial loads, significantly hindering total power generation.

Why This Matters

BozokMedia analysis shows that this supply chain disruption poses a significant risk to Telangana's grid stability. With anticipated peak power demand expected to exceed 260 gigawatts in the coming months, the ability of TG-Genco to run its plants at rated capacity is non-negotiable. Any failure to secure higher-grade coal could lead to widespread power shortages during peak hours.

The mismatch between coal grade and plant design is a silent killer of thermal efficiency, leading to higher costs and lower reliability.

The situation is exacerbated by the upcoming commissioning of the fifth unit at YTPS next month. Once fully operational, the five units together will require a massive 50,000 tonnes of coal per day. SCCL has already signaled its inability to meet the high-grade requirements for all units, suggesting that TG-Genco must diversify its sourcing through CIL and MCL.

Historical Background

Historically, Telangana's power sector has relied heavily on the local Singareni coalfields. However, as thermal technology advances toward higher-efficiency units requiring specific calorific values, the limitations of local coal grades have become a bottleneck, necessitating a shift toward national-level coal procurement strategies.

Did You Know?: The Central Electricity Authority (CEA) mandates that power plants maintain a minimum of 26 days of ground coal stock to ensure operational continuity during supply disruptions.

Frequently Asked Questions

1. Why is TG-Genco seeking coal from CIL and MCL?
Because SCCL is unable to provide the required quantity and, more importantly, the high-grade quality of coal needed for modern thermal units.

2. How much coal stock is currently available at the power stations?
Current stocks are only sufficient for approximately 4 days, which is significantly below the safety norm of 26 days.