Centre Approves Coal India Supply for Two Yadadri Power Plant Units

The Union Coal Ministry has approved coal supplies from Coal India Limited (CIL) to Units 1 and 2 of Telangana’s Yadadri Thermal Power Plant, which have a combined generation capacity of 1,600 MW. The ministry has directed Telangana Power Generation Corporation Limited (TGGENCO) to terminate the existing coal linkage arrangement with Singareni Collieries Company Limited and transfer the linkage to CIL. The Standing Linkage Committee recommended the change following meetings held on September 28 and October 21, 2026. According to the allocation, the two units require around 7,712 tonnes of coal per day. Of this, 1,146 tonnes will be supplied by Eastern Coalfields Limited (ECL), from mines in Jharkhand or West Bengal, while 6,566 tonnes will come from Mahanadi Coalfields Limited (MCL) mines in Odisha.

The allocated coal grades are G8 from ECL and G13 from MCL, which TGGENCO reportedly considers better in quality than the G9 grade available from Singareni. The allocation was determined based on the Central Electricity Authority’s guidelines issued on August 8, 2024. TGGENCO has been advised to enter into commercial supply agreements with ECL and MCL. Singareni had agreed in 2022 to supply 1.4 crore tonnes of G9 coal annually to the Yadadri plant, but its production of that grade reportedly does not exceed 40 lakh tonnes a year. The company recently informed the state government that it could not meet the committed supply. Although the new allocation is expected to improve coal availability for the two units, the source of the remaining coal required to meet the plant’s annual demand of 1.4 crore tonnes is yet to be clarified.