KCR demands to reduce power production cost by changing coal allocation policy

Telangana Chief Minister K Chandrasekhar Rao Saturday demanded the Centre reduce the cost of power production by bringing in changes in the way coal allocations are made. The chief minister said he would take up the issue with the newly formed government at the Centre soon, according to a release from his office Saturday night.

After visiting the power plant being built by NTPC at Ramagundam in the state Saturday evening, Rao held a meeting with officials. He said additional 2,000 MW of power be supplied from NTPC to Telangana in view of growing demand.

"The policy being followed by the Centre with regard to allocation of coal to power plants is not proper. "Coal for Ramagundam NTPC plant is being used by bringing it from Mandakini in Odisha which is at a distance of 950 km, instead of taking coal from Singareni (state-run miner Singareni Collieries) which is nearby. This leads to an increase in the cost of production," the release quoted Rao as saying. It also said Fertilisers Corporation at Ramagundam would start production this year. This was stated by the corporation's officials, according to the release.