Singareni prioritises Telangana thermal plants amid rising power demand

With erratic monsoon conditions linked to El Nino pushing up electricity demand across India, thermal power generators are scrambling for coal. Telangana's state-owned Singareni Collieries Company Ltd (SCCL) has responded by giving first priority to local thermal stations, supplying nearly 90% of its August dispatches to plants within the state.

According to SCCL officials, the company dispatched over 4.05 million tonnes of coal to power utilities with which it has linkages. Of this, about 3.62 million tonnes went to thermal power stations operated by TG-Genco and other utilities located in Telangana. The state's power generation company receives roughly half of all coal dispatched by Singareni.

The move comes as TG-Genco has written to several public-sector coal firms, including Coal India Ltd, seeking an additional 5 million tonnes to meet rising demand and overcome efficiency issues caused by low-grade coal. Singareni, however, has chosen to serve local needs first.

Several utilities outside Telangana have also approached Singareni for supplies. Damodar Valley Corporation (West Bengal), NTECL Durgapur, NSPCL–Jhajjar (Aravali) and NTECL Tamil Nadu have collectively sought about 5.2 million tonnes over the next six months. Other thermal companies have made similar requests.

Despite the commercial opportunity in supplying other states, Singareni has maintained its decades-long practice of prioritising Telangana's thermal stations, which also serve Andhra Pradesh, Karnataka, Maharashtra and Tamil Nadu. The company's focus on local supply comes as Telangana's peak power demand touched 18,227 MW on September 7, just one megawatt short of the all-time high recorded in March. Daily energy consumption in the state has exceeded 300 million units for the first seven days of September.