YTPS coal shortage risks imposing ₹40,000 crore burden on Telangana

The Yadadri Thermal Power Station (YTPS) in Telangana confronts a persistent operational challenge stemming from inadequate supplies of Grade 9 quality coal from Singareni Collieries Company Limited (SCCL), according to government sources.

The shortfall in high-specification coal availability threatens to impose substantial financial burdens on the state exchequer. Officials estimate that coal transportation costs alone could exceed ₹40,000 crore over the power plant's operational lifetime, creating a significant fiscal liability that extends far into the future.

The YTPS, designed to leverage domestic coal resources, depends heavily on SCCL supplies. The inability to secure adequate quantities of the required coal grade forces the state to source fuel from alternative suppliers, necessitating longer transportation routes and elevated logistics expenses.

This structural deficit in coal availability raises concerns about the financial sustainability of the project. Government sources suggest that without resolution of the supply constraint, the power station will continue to generate substantial costs that the state will be forced to absorb over several decades of operation.