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Naidu's Government Set To Shock Telangana?


After the Telangana's Singareni Collieries stopped coal supply to Andhra Pradesh citing defaults in dues without prior notice, the angry Chandrababu government is all set to give a strong return shock to the KCR government in the similar fashion.

Andhra Pradesh is yet to clear Rs. 2,000 crore to the Singareni Collieries Ltd. On the other hand, AP is supposed to get more than Rs. 4,000 crores from several Telangana electricity companies.

This gave a direct access to the AP government to hold talks with Coal India without depending on the Singareni Collieries Ltd. If the talks with Coal India end up being fruitful, AP will permanently bud goodbye to the Singareni Collieries Ltd and even issue ultimatum to Telangana about not supplying electricity unless the dues are paid.

Singareni Collieries Ltd is close to Andhra Pradesh and this helps in cost cutting in terms of transportation charges. However, the coal quality in Singareni is below par in comparison with the coal that is imported from Coal India.

If AP Genco's efforts pay off after talks with Coal India, AP will put an end to taking coal from Singareni Collieries and would also rethink its game plan in supplying electricity to Telangana.

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