HYDERABAD: Citing shortfalls in the quality and quantity of coal supplied by the Singareni Collieries Company Limited (SCCL), the Telangana Power Generation Corporation Limited (TGGENCO) has requested the Power Ministry to allocate an additional 5 million tonnes of coal from Mahanadi Coalfields Limited (MCL) at the notified price.
The coal stocks at TGGENCO’s thermal power stations are currently sufficient for only four days, against the 26-day stock requirement prescribed by the Central Electricity Authority (CEA), it said in a letter to the Power Ministry.
The shortage is also affecting generation, with several units operating at partial loads due to inadequate supplies of higher-grade coal. The 500 MW and 800 MW units of Kothagudem Thermal Power Station (KTPS) Stage-VI and VII, and the units of Yadadri Thermal Power Station (YTPS), are designed to use G9/G10 grade coal, TGGENCO said.
“The anticipated peak power demand is over 260 GW during the coming months, and all the coal-based thermal units of TGGENCO will need to operate at their rated capacities to meet the increased demand,” it said.
All TGGENCO thermal stations have long-term coal linkages with SCCL totalling 28.87 MTPA, sanctioned by the Ministry of Coal. However, linkage materialisation from SCCL was only 76%, while quality materialisation against the FSA grade was around 40% in FY 2025-26, TGGENCO said.
“It is pertinent to mention that the linkage materialisation from SCCL is only 76%, and the quality materialisation with respect to FSA grade is around 40% for FY 2025-26. Due to this shortfall in quality and quantity, the generation at TGGENCO’s power stations is severely affected,” the corporation said.
TGGENCO said four of the five 800 MW units of YTPS had achieved commercial operation, while the remaining unit was scheduled to achieve COD in September. Once all five units are operational, YTPS will require around 50,000 tonnes of coal a day.
TGGENCO may be asked to hike coal offtake from MCL
The SCCL informed TGGENCO in letters issued in February and April 2026 that it was unable to supply higher-grade coal as required. It said it could meet the requirements of three 800 MW YTPS units as a long-term measure, while the remaining two units would need coal linkages from alternative sources, including Coal India Limited, through the Standing Linkage Committee (Long Term).
The Central Electricity Authority subsequently communicated the minutes of the Inter-Ministerial Committee meeting held on July 30, 2026. According to the minutes, TGGENCO may be asked to increase coal offtake from MCL to ensure adequate stocks at its thermal power plants. Coal India Limited and MCL also agreed to supply an additional 5 million tonnes from MCL to TGGENCO at the notified price under the extant policy.
MCL, however, informed the committee that TGGENCO did not have a Fuel Supply Agreement or linkage with it and that the matter would have to be taken up with Coal India Limited for allocation or linkage under the applicable policy.
TGGENCO has now requested the Power Ministry to make recommendations to the upcoming Standing Linkage Committee (Long Term) meeting of the Ministry of Coal for allocation of 5 million tonnes of coal from MCL at the notified price.