Telangana CM ready for probe into imported coal deal, leaves choice of inquiry to KTR

Chief Minister A. Revanth Reddy expressed his readiness for an inquiry into the import of Grade 9 coal for the Yadadri thermal power plant, in response to a letter written by BRS working president K.T. Rama Rao.

He left the choice of the investigating agency, the Central Bureau of Investigation (CBI), Enforcement Directorate (ED) or Income Tax Department, to Mr. Rao.

Mr. Reddy revealed that the BRS government entered into agreements for importing coal from abroad and also wrote to the Railways and Krishnapatnam port authorities for transportation assistance. The agreement had been signed with MSTC in 2016 for importing seven million tonnes of coal annually for the Yadadri plant, which required 14 million tonnes a year. The agreement, dated December 9, 2016, specifically provided for imported Grade 9 coal, he said.

Showing documents to support his allegations, he claimed that the arrangements were aimed at gradually eliminating Singareni Collieries Company Limited (SCCL) from supplying Grade 9 coal to the Yadadri plant and increasing the share of imported coal from 50% to 100%.

Mr Reddy alleged that the previous government had kept Singareni out of 141 coal-related tenders and had failed to utilise opportunities to secure additional coal resources. Singareni had only about two million tonnes of Grade 9 coal available, he said. He alleged that the move was intended to benefit individuals who had invested money in a newspaper owned by the family of former Chief Minister K. Chandrasekhar Rao, claiming ₹100 crore was invested.

The BRS government also moved the National Green Tribunal (NGT) to create a situation in which the entire annual coal requirement of 14 million tonnes was to be met through imports. The Congress government conducted a public hearing in 2024 following which the stay was lifted, he said.

The Chief Minister questioned the escalation in the cost of the Yadadri supercritical thermal power project. An agreement was signed with Bharat Heavy Electricals Limited (BHEL) for ₹17,950 crore. The project cost subsequently increased by an additional ₹37,781 crore and a 110% escalation in estimates, he claimed.

Comparing generation costs, Mr. Reddy said electricity was being produced at ₹4.62 per unit at Manuguru, ₹3.94 at Kothagudem, and ₹4.05 at Singareni Units 1 and 2, against ₹6.60 at Yadadri as it was established away from Singareni belt. The difference, he said, would impose an additional burden of about ₹50,000 crore, with the cumulative impact potentially reaching ₹1 lakh crore over 25 years.

The Chief Minister said the fifth unit of the Yadadri plant was yet to be completed. Meanwhile, the government had begun supplying coal from the Naini block, with two to three railway rakes being transported daily to support power generation. He said he had spoken to Union Coal Minister G. Kishan Reddy on Thursday to make efforts to ensure that Yadadri operated entirely on domestic coal.