Energy Minister Peddireddi Ramachandra Reddy has said that AP-Genco and A.P. Mineral Development Corporation (APMDC) will henceforth jointly take part in the coal auctions conducted by the Central government to be in a better position to procure the fossil fuel for the thermal power plants.
Besides, it has been decided to explore the possibility of setting up power plants at the coal pit-heads itself in order to cut down the transportation expenditure, which is a major cost component.
Addressing a review meeting on the energy sector at the Secretariat on November 3, Mr. Ramachandra Reddy said the AP-Genco and APMDC should take steps for sourcing coal from the Suliyari mines in Madhya Pradesh and ensure that the requirement of thermal power plants in the State were met from the mines to the maximum extent possible.
Since the APMDC itself was extracting coal at Suliyari, the coal shortage faced by thermal power plants in the State could be avoided, he said.
Special Chief Secretaries K. Vijayanand (Energy) and Gopal Krishna Dwivedi (Mines), AP-Genco MD K.V.N. Chakradhar Babu, and Director of Mines and Geology V.G. Venkat Reddy were present.
