Hyderabad: Amid record power demand and mounting concerns over coal availability, the Telangana govt has secured a major short-term boost for its electricity sector by procuring five lakh tonnes of higher-grade coal through auction for the Yadadri thermal power station (YTPS). The development comes as the state battles soaring power consumption driven by unseasonal heat and increased agricultural demand.




The coal, procured under window-2 auctions from Mahanadi Coalfields Ltd (MCL) in Odisha and South Eastern Coalfields Ltd (SECL) in Chhattisgarh, is expected to be lifted next week. Officials said the consignment comprises grade-11 coal , which is superior to the G-18, G-13 and G-12 grades currently being supplied to thermal stations in the state.




With power demand continuing to climb due to hot weather conditions with the impact of El Nino , the govt’s immediate focus is on improving generation at YTPS, where coal constraints have prevented the plant from operating at full capacity.




“The five lakh tonnes is a temporary arrangement. The state govt has already tried to get coal allocation from Mahanadi coal mines through a coal linkage agreement. The Centre has in principle agreed to allocate about six million tonnes to nine million tonnes depending upon the quality of the coal for two units of YTPS. After getting the Coal India Limited (CIL) remarks, the standing committee on coal linkage is expected to clear it next week,” sources in the govt said.




The energy department and Telangana Genco have been exploring multiple sources to augment coal supplies for thermal stations across the state.




“Telangana Genco is also trying to enhance coal transportation from Naini coal block, about 15,000 to 20,000 tonnes daily to YTPS from the existing 12,000 tonnes. Genco has finalised tenders for coal transportation,” a senior Genco official told TOI.




Officials said the latest measures are aimed at meeting rising demand, which recently crossed the 20,000 MW mark. Despite a total thermal installed capacity of around 7,000 MW, state thermal stations are currently generating only 4,000-5,000 MW.




Sources said state-owned generation units, including Genco, Singareni thermal plant and NTPC stations, together contribute around 10,000 MW, with the remaining requirement being met through power purchases from private generators and under long-term power purchase agreements.



Demand scales new highs


Power demand in Telangana touched a record 20,003 MW on Thursday, while demand in the southern discom area reached an all-time high of 12,532 MW. Officials said demand in the TGSPDCL jurisdiction touched 12,532 MW at 12.01 pm on Oct 16, surpassing the previous peak of 12,299 MW recorded on Sept 30.




In Greater Hyderabad alone, demand reached 4,063 MW at 12.30 pm. Besides household consumption, power use by commercial establishments, industries and IT companies has risen sharply, while persistent heat and humidity have increased the use of cooling appliances.




“The peak demand recorded in the last financial year, 2025-26, was 18,548 MW, and the latest record is 1,455 MW higher. On the same day, statewide power consumption reached 334.54 million units. From Oct 1 to 15, the state’s average peak demand stood at 19,289 MW, and average daily power consumption was 321.34 million units,” TGSPDCL officials said.




TGSPDCL CMD Jitesh V Patil said the utility is taking steps to ensure uninterrupted supply amid rising consumption across sectors.




“The major reasons were dependence on borewells in agriculture and increased use of motors due to falling groundwater levels are putting additional pressure on power requirements. Measures such as power purchases and augmentation of generation capacity are being taken to secure electricity in line with rising demand,” he said.




He appealed to consumers to use electricity judiciously and conserve water, noting that greater dependence on groundwater is also contributing to increased power consumption.