Yadadri power plant coal crisis: Telangana to source G-9 grade coal from Mahanadi, Coal India
Synopsis
Telangana's Yadadri Thermal Power Plant has stopped generating electricity because it needs G-9 grade coal that Singareni simply cannot supply — a crisis the ruling Congress is blaming on the BRS government's failure to bid for the right coal blocks. With a ₹40,000 crore logistics burden already on the books and Dasara as the deadline to restore power, the state is now reaching out to Mahanadi Coalfields, Coal India, and the Union Coal Ministry.
Key Takeaways
Yadadri Thermal Power Plant has halted power generation due to unavailability of G-9 grade coal at Singareni Collieries .
Telangana will procure G-9 coal on a temporary basis from Mahanadi Coalfields and Coal India , on direction from CM A.
The plant's location far from the pithead has placed an additional burden of approximately ₹40,000 crore on the state for coal transportation, according to Deputy CM Mallu Bhatti Vikramarka .
Officials confirmed 14 coal blocks at Singareni have already been closed, and the previous BRS government did not participate in past coal block e-auctions.
Deputy CM Vikramarka is set to meet Union Coal Minister Kishan Reddy to secure a G-9 coal supply arrangement from the Centre.
The BRS deployed a fact-finding team to thermal plants and the Singareni headquarters on the same day, led by direction from K.T.
The Telangana government will procure G-9 grade coal from Mahanadi Coalfields and Coal India after power generation at the Yadadri Thermal Power Plant came to a halt due to a critical coal shortage. The move follows a high-level review of the energy sector on Thursday, 24 September 2026, presided over by Chief Minister A. Revanth Reddy, who directed officials to restore full-scale power generation at the plant by Dasara.
Why Power Generation Stopped
The Yadadri Thermal Power Station requires G-9 grade coal for its specific technology, a grade that Singareni Collieries — Telangana's primary state-owned coal producer — cannot supply. Officials briefed the Chief Minister that Singareni lacks the coal blocks necessary to produce G-9 coal, and that no such supply is possible from Singareni in the near future. Adding to the crisis, officials confirmed that the previous government had not participated in coal block auctions, and that 14 coal blocks at Singareni have already been closed.
The Energy department has been directed to initiate procurement measures from Mahanadi Coalfields and Coal India on an urgent basis.
The ₹40,000 Crore Transportation Burden
Deputy Chief Minister Mallu Bhatti Vikramarka, who also holds the Energy portfolio, stated that the plant was constructed far from the pithead — the site adjacent to coal mines — placing an additional financial burden of approximately ₹40,000 crore on the state for coal transportation logistics. He attributed this outcome to what he described as 'ill-considered decisions' by the previous Bharat Rashtra Samithi (BRS) government. Vikramarka posted this on his X account, also citing the failure to participate in past e-auctions as a compounding factor.
'We reviewed the difficulties being faced due to the unavailability of G-9 grade coal in Singareni and the failure to participate in e-auctions in the past. With the aim of continuously providing quality power to the people, we directed the officials to take necessary actions for the temporary purchase of coal from Mahanadi Coal Fields and Coal India,' Vikramarka said.
Centre Rope-In: Meeting With Union Coal Minister Planned
Chief Minister Revanth Reddy has instructed Deputy CM Vikramarka to hold a meeting with Union Coal Minister Kishan Reddy to address the coal supply crisis. Vikramarka confirmed he would 'soon discuss' the supply of G-9 grade coal from the Central Coal Mines Department with the Union minister. This Centre-state outreach is considered essential since Mahanadi Coalfields and Coal India both fall under the Union government's jurisdiction.
BRS Deploys Fact-Finding Teams
The principal opposition party, BRS, launched a counter-offensive on the same day, deploying a fact-finding team to visit major thermal power plants across Telangana and the Singareni headquarters. The team comprises senior leaders, former ministers, and MLAs, acting on the directions of BRS Working President K.T. Rama Rao. The party aims to assess ground-level conditions, including power generation capacity, project progress, and any operational delays under the current government. BRS said it would prepare a detailed report to counter what it called 'misinformation' surrounding projects built during the previous KCR government.
What Comes Next
The state government's immediate target is to restore full-scale generation at Yadadri by the Dasara festival. The structural challenge — a mismatch between the plant's coal-grade requirements and local availability — will require longer-term resolution, potentially through fresh coal block acquisitions or a permanent supply arrangement with Coal India. The episode underscores the risks of large infrastructure investments made without securing upstream fuel supply chains.
Point of View
Located far from any coalfield. The ₹40,000 crore transportation burden is not an abstract figure — it is a recurring fiscal drain that will outlast any short-term procurement fix. Blaming the BRS government is politically convenient for the ruling Congress, but the structural mismatch between plant design and fuel supply chain is a permanent liability regardless of who built it. The real question is whether the state will now seek permanent coal block allocations or remain dependent on spot procurement — a far costlier and less reliable model.
NationPress
24 Sept 2026
Frequently Asked Questions
Why has the Yadadri Thermal Power Plant stopped generating power?
The Yadadri Thermal Power Plant halted generation because it requires G-9 grade coal, which Singareni Collieries — the state's primary coal producer — cannot supply. Officials confirmed that Singareni lacks the necessary coal blocks to produce G-9 coal, and that the previous government did not participate in coal block e-auctions to secure this supply.
Where will Telangana source G-9 grade coal from?
The Telangana government will procure G-9 grade coal on a temporary basis from Mahanadi Coalfields and Coal India. Deputy CM Mallu Bhatti Vikramarka is also scheduled to meet Union Coal Minister Kishan Reddy to formalise a supply arrangement through the Central Coal Mines Department.
What is the ₹40,000 crore burden mentioned in connection with Yadadri?
Deputy CM Vikramarka stated that constructing the Yadadri plant far from the pithead — rather than adjacent to a coalfield — has placed an additional financial burden of approximately ₹40,000 crore on Telangana for coal transportation logistics. He attributed this to decisions made by the previous BRS government.
When does the Telangana government aim to restore full power generation at Yadadri?
Chief Minister A. Revanth Reddy has directed officials to ensure full-scale power generation at the Yadadri Thermal Power Plant is restored by Dasara. The Energy department has been asked to initiate coal procurement measures immediately.
What is the BRS doing in response to the power crisis?
The BRS deployed a fact-finding team on 24 September 2026 to visit major thermal power plants across Telangana and the Singareni headquarters. Acting on directions from BRS Working President K.T. Rama Rao, the team — comprising senior leaders, former ministers, and MLAs — aims to assess ground conditions and prepare a report countering what the party described as misinformation about projects built during the KCR government.
