KTR questions move to import coal amid reports of higher costs

BRS working president KT Rama Rao has criticised the Telangana Congress government's reported plan to import coal from overseas at about Rs 9,000 a tonne, even though Singareni coal costs around Rs 3,800 a tonne. Official sources said up to 50 lakh tonnes could be imported from Australia and Indonesia as thermal plants face shortages.

Hyderabad: Amid a spiralling power crisis due to short supply of coal affecting power generation in Telangana, BRS working president KT Rama Rao questioned the reported move to import coal from overseas despite the availability of Singareni coal at a much lower price. He recalled that during the 9.5-year K Chandrashekhar Rao government, 24/7 power was supplied using coal from Singareni Collieries.

“Say no to Singareni coal which costs Rs 3,800 per tonne. Say yes to importing coal from overseas which costs Rs 9,000 per tonne. Another Tughlaq decision of the Congress government,” he said.

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Reacting to media reports on proposals for coal imports, Rama Rao sought to know the reasons behind the government’s alleged decision. “For whose benefit was the decision being done? Why should the people of Telangana bear this burden?” he asked. He reminded that Telangana had the largest coal blocks in south India and Singareni was supplying coal to Andhra Pradesh, Tamil Nadu and Maharashtra.

Meanwhile, official sources said the Congress government was considering importing up to 50 lakh tonnes of coal from Australia and Indonesia amid shortages at thermal power plants. Domestic coal is reportedly available at around Rs 3,800-Rs 4,200 a tonne, while imported coal could cost more than Rs 10,000 a tonne.

Reports said TGGenco plants currently had only three to four days of coal stocks against the recommended 21 days. Genco officials had reportedly suggested approaching Coal India and other domestic sources, including the Naini coal block, but efforts had not progressed beyond correspondence with Mahanadi Coalfields.

Genco engineers reportedly raised concerns over the use of imported coal that could indirectly affect the operation of thermal power plants, besides imposing an additional financial burden of around Rs 3,000 crore for 50 lakh tonnes and transportation costs.