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Business
YTPS to remain a financial burden on Telangana due to lack of G9 grade coal from Singareni
✍️ The Hindu
🗓 25 Sep 2026, 12:02 AM
👁 9
Government sources say the Yadadri Thermal Power Station (YTPS) will impose a lifelong financial burden on Telangana due to the unavailability of G9 grade coal from Singareni, with coal transportation alone expected to cost ₹40,000 crore over the plant’s lifetime.
The Yadadri Thermal Power Station (YTPS), a major power project in Telangana, is expected to face a persistent financial strain on the state exchequer. Officials indicate that the project’s reliance on G9 grade coal from Singareni Collieries is problematic because the required quality coal is not available locally.
Due to this shortage, YTPS will have to source coal from distant locations, significantly increasing transportation expenses. Government sources estimate that the coal transportation cost alone could reach ₹40,000 crore over the lifetime of the plant.
Analysts warn that such a recurring expense could affect the state’s fiscal health and potentially lead to higher electricity tariffs for consumers. The situation underscores the challenges of aligning fuel supply agreements with power plant specifications.
Due to this shortage, YTPS will have to source coal from distant locations, significantly increasing transportation expenses. Government sources estimate that the coal transportation cost alone could reach ₹40,000 crore over the lifetime of the plant.
Analysts warn that such a recurring expense could affect the state’s fiscal health and potentially lead to higher electricity tariffs for consumers. The situation underscores the challenges of aligning fuel supply agreements with power plant specifications.