Hyderabad, September 24, 2026: Telangana Chief Minister A. Revanth Reddy has directed Energy Department officials to initiate steps to procure coal from Mahanadi Coalfields Ltd (MCL) and Coal India Ltd after coal shortages disrupted power generation at the Yadadri Thermal Power Station.
During a review meeting on the state’s power situation, Revanth Reddy asked Deputy Chief Minister Mallu Bhatti Vikramarka, who also handles the Energy portfolio, to discuss the coal supply issue with Union Coal Minister G. Kishan Reddy.
Yadadri plant faces coal shortage
Officials informed the meeting that Yadadri requires G9-grade coal for power generation, while Singareni Collieries does not currently have coal blocks capable of supplying the required grade. Officials also said there was little prospect of Singareni producing G9-grade coal in the near future.
The shortage has affected generation at the 4,000-MW Yadadri Thermal Power Station. Revanth Reddy directed Telangana GENCO officials to work toward operating the plant at its full installed capacity before the Dasara festival.
Government reviews coal logistics
The meeting also examined the location of the Yadadri plant, which was constructed away from coal mines. According to officials cited in reports, transporting coal to the plant has created a significant additional financial burden for the state. An official estimate put the additional burden at around ₹40,000 crore.
The Chief Minister also directed officials to ensure uninterrupted electricity supplies for lift-irrigation projects and agricultural activities, while asking thermal plants to operate at available capacity.
Alternative coal supplies
The decision to approach Mahanadi Coalfields and Coal India is aimed at securing the required coal grade and supporting thermal power generation while Telangana addresses constraints in domestic supplies from Singareni.
The move comes as Coal India has reported stronger coal dispatches during the current financial year. According to the Ministry of Coal, CIL supplied 322.90 million tonnes between April and August 2026, up 6.7% from the corresponding period a year earlier.