Telangana’s Coal Plan on AP Backfired Miserably?

The ongoing rift between APGENCO and Singareni Collieries took a new twist. Singareni stopped coal supply to APGENCO plants citing arrears of 2000 Crore. APGENCO confirmed that Telangana GENCO owes 4000 Crore to it and can be adjusted with the dues of Singareni. But then Singareni stopped the coal supply for the last 6 days without any intimation.

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APGENCO reacted sharply to this and is consulting with Coal India for Coal Supply. APGENCO is the biggest customer for Singareni losing it will have financial implications. The Coal supplied by Singareni is of low quality but APGENCO is preferring it due to close proximity. Coal India Coal will be more beneficial due to its high-quality APGENCO feels.

APGENCO’s decision came as a rude shock to Singareni. The company stepped down a bit and informed APGENCO that it will resume coal supply if they repay at least August and September arrears. APGENCO officials informed them they will take a decision of resuming the coal supply only after the talks with Coal India.