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Telangana CM Open to Probe into Yadadri Coal Supply Controversy

Telangana's Chief Minister has indicated willingness to permit an inquiry into an imported coal deal for the Yadadri thermal power plant, while delegating the decision on the probe's scope to his predecessor. The move comes amid allegations of a ₹37,781 crore cost escalation in the project.

LSN India · 16 October 2026

Telangana CM Open to Probe into Yadadri Coal Supply Controversy

The Telangana government has signaled openness to investigating the contentious imported coal arrangement for the Yadadri Thermal Power Station, with the Chief Minister leaving the final call on the inquiry's framework to former Chief Minister K. Chandrashekar Rao, popularly known as KTR.

The decision to probe the coal deal follows allegations that the previous Bharatiya Rashtra Samithi administration sought to sideline Singareni Collieries Company Limited from supplying coal to the power project. State officials have questioned the substantial cost escalation of ₹37,781 crore associated with the project, raising concerns over financial mismanagement.

The Yadadri thermal power station, a significant infrastructure project for the state, has been mired in controversy over its procurement practices and project execution. The allegation of deliberately marginalizing domestic coal suppliers in favor of imported coal has drawn scrutiny from both political circles and industry observers.

By offering to conduct an inquiry while delegating authority over its parameters to KTR, the current administration appears to be balancing accountability with political pragmatism. The outcome of such a probe could have significant implications for understanding how major state projects were managed in the previous regime.