Genco accuses SCCL of supplying poor-quality coal to Telangana

CMD Harish alleges it is sending higher-grade coal to other states; Singareni CMD Balram dismisses claims

Image of coal used for representational purposes only. File photo | AP

HYDERABAD: In a letter addressed to the Singareni Collieries Company Limited (SCCL), Telangana State Power Generation Corporation Limited (TG Genco) has accused the coal supplier of dispatching poor-quality coal to its thermal power stations while sending higher-grade coal to other states.

TG Genco chairman and managing director (CMD) S Harish detailed these concerns in a three-page letter to SCCL CMD N Balram, urging immediate corrective measures.

When contacted, SCCL CMD Balram dismissed these claims, stating that SCCL does not produce coal but only supplies it as a naturally available resource. He added that the company ensures the coal supplied to TG Genco is free from contamination and foreign materials. Confirming receipt of the letter, he said, “I will create awareness among Genco officials about the actual situation.”

However, Genco officials maintained that SCCL is sending higher-grade coal to other states while supplying lower-grade coal to Telangana’s power plants.

With “the SCCL mines located in Telangana, it is requested that priority may be given to the TG Genco thermal units in supplying the higher grade coal to meet the increased power demand in the state and also being TG Genco, the state-owned public sector undertaking (PSU) of Telangana”, Harish wrote.

In the letter, the CMD furnished data on the poor quality of coal supplied to Genco’s thermal plants in September and October.

“It is requested to please arrange to supply designated coal to TG Genco thermal stations as per the fuel supply agreement (FSA) grade to operate the units at their rated capacities,” he said.

Harish also listed several “consequential impacts” of receiving poor-quality coal: units being forced to operate at partial loads, leading to generation loss; reduction in plant load factor (PLF), affecting station availability against Telangana Electricity Regulatory Commission (TGERC) norms and causing revenue loss; increased wear and tear of boiler pressure parts; higher auxiliary power consumption and heat rate; heavy ash content burdening the ash evacuation system; and excess coal consumption beyond design levels, resulting in higher freight and handling costs.

The CMD further noted that TG Genco’s thermal stations are “totally linked to SCCL for a quantity of 28.872 million tonnes per annum,” and that “about 85% of the FSA quantity is higher grade with gross calorific value (GCV) ranging from 4,000–4,900 kcal/kg.”

He explained that the boilers at KTPS-VI (500 MW), KTP Stage-VII (800 MW), KTPP Stage-I (500 MW), BTPS (4×270 MW), and YTPS (5×800 MW) were designed for high-grade coal (GCV 4,375 kcal/kg).

“However, SCCL is supplying coal from their group mines—JVRB, Rudrampur, Manuguru, and Ramagundam—to KTPS Complex, BTPS, KTPP Stage-I, and YTPS, and the majority of the coal quality is below the FSA grade (G14/G15 grade of GCV 2,800–3,400 kcal/kg),” Harish wrote. He also enclosed a station-wise statement showing coal supplies against FSA for FY 2024–25 and 2025–26 (up to September).

“TGERC is approving annual fixed charges for thermal stations based on the normative plant availability of 85%. Any reduction in plant availability against the normative, the fixed charges shall be regulated on a prorate basis,” Harish added.

The letter concluded that the receipt of poor-quality coal has hindered TG Genco’s ability to achieve its rated capacity, thereby impacting fixed charges and overall revenue.