States » SouthPosted at: Oct 15 2026 11:49PM


Telangana CM blames previous BRS Govt's 2016 coal import MoU for projected Rs 1 lakh crore burden

Hyderabad, Oct. 15 (UNI) Telangana Chief Minister A. Revanth Reddy on Thursday night blamed the previous BRS government’s 2016 memorandum of understanding (MoU) with MSTC for coal imports for the additional financial burden on the Yadadri Thermal Power Plant, which he said could reach Rs 1 lakh crore over the next 25 years.
Addressing a press conference at the Dr. B.R. Ambedkar Telangana Secretariat, Reddy alleged that the previous BRS government led by K. Chandrashekar Rao (KCR) had entered into an MoU with Metal Scrap Trade Corporation Limited (MSTC) in December 2016 for importing seven million tonnes of G9-grade coal for the Yadadri plant.
The CM criticised the decision to establish the plant at Damaracherla instead of a location with better access to coal and water, claiming that the choice had resulted in an additional financial burden of Rs 50,000 crore, which could rise to Rs 1 lakh crore over 25 years.
Responding to allegations by BRS working president K.T. Rama Rao (KTR) over coal sourcing for the plant, Reddy questioned the BRS leaders’ stand on coal quality, arguing that their current position contradicted the import arrangement entered into by their government in 2016.
He said the cost of generating a unit of electricity at Singareni and NTPC power plants ranged between Rs 4.29 and Rs 4.63, while the cost at the Yadadri Thermal Power Station (YTPS) stood at Rs 6.66 per unit.
Reddy said the previous government’s decisions had left the State with the requirement to import 14 million tonnes of coal.
He alleged that the decision to establish the Yadadri plant had also pushed Singareni into losses and maintained that the project cost would have been lower had the plant been located at Manuguru.
The Chief Minister said he was ready for an inquiry into coal imports and challenged KTR to specify which agency should investigate the matter.
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Tags: #Telangana CM blames previous BRS Govt's 2016 coal import MoU for projected Rs 1 lakh crore burden
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