AP Genco, APMDC join forces to secure coal supply for states

07 Nov 2023 CW Team

In response to the rising demand for coal in thermal power plants, AP Genco and AP Mineral Development Corporation (APMDC) have taken a proactive step by forming a joint venture firm and participating in open tenders for coal blocks. This decision aims to bolster the state's public sector power generation stations, utilising the expertise of the Mineral Development Corporation.

The thermal power plants in the state have faced challenges in maintaining coal stocks due to the absence of captive mines. Unlike neighbouring Telangana, which receives continuous supplies from Singareni Collieries, AP's power stations have been dependent on stocks from Mahanandi Coal Fields in Odisha. During peak demand periods, the allocation and transportation of coal by the Centre have been delayed, leading to crises, especially in summer when hydel stations are not generating power and power exchange prices skyrocket.

Energy Minister Peddireddy Ramachandra Reddy expressed the government's determination to make power utilities self-reliant in the long run. Their strategy involves acquiring coal blocks through open tenders initiated by the Centre to strengthen the energy sector and enhance self-sufficiency. Additionally, APMDC has been directed to explore the transportation of coal stocks from Suliyari block in Madhya Pradesh to AP thermal power plants, emphasising the government's commitment to finding sustainable solutions.

Furthermore, the state government is considering establishing new thermal power plants near coal mines, ensuring a steady energy supply through the grid. These initiatives mark significant progress in ensuring reliable and sustainable power generation for the region.

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