Has the coal controversy caused huge losses to the state?

A minor error in coal grade identification may result in a massive financial burden of nearly ₹300 crore on the Andhra Pradesh Mineral Development Corporation. The coal reserves at the Suliyari block in Madhya Pradesh were initially classified as G6 grade, and mining operations were awarded to Adani Power Group based on that classification. However, the Coal Controller Organization later reclassified the coal as G7 grade, triggering a dispute.

Adani Power argues that the change in coal grade has caused an additional burden of ₹300 crore and has stated that the Andhra Pradesh Mineral Development Corporation must bear the cost. The corporation has repeatedly appealed to the Coal Controller Organization to restore the coal classification to G6 grade, but no response has been received so far. The Andhra Pradesh government has also written multiple letters to the Centre seeking intervention in the matter.

Officials are now holding discussions with Adani Power to resolve the dispute amicably. However, if negotiations fail, the issue may move towards arbitration and legal proceedings. The Mines Department is urging the state government to take up the issue with the Centre and ensure a resolution before the financial burden falls on the state corporation.