Published On : Thu, Jun 25th, 2026
By Nagpur Today Nagpur News

‘Crores lost, power output hit’: Chandrapur Thermal Plant faces serious corruption allegations

Complaint calls for forensic audit into coal supply chain, quality testing, transportation contracts and ash management amid claims of an entrenched nexus
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Nagpur/Chandrapur: Serious questions have been raised over the functioning of the Chandrapur Super Thermal Power Station (CSTPS), one of Maharashtra’s largest power generation facilities, with allegations of irregularities in coal procurement, coal beneficiation, transportation, ash disposal and plant operations causing significant financial losses to the State-run Maharashtra State Power Generation Company Limited (Mahagenco).

The allegations have been made by Ghugghus Municipal Councillor Dilip Pittalwar, who has submitted a detailed representation to the Chief Engineer of Chandrapur Thermal Power Station, seeking a high-level inquiry into the plant’s deteriorating performance, alleged irregularities in the coal supply chain and the adverse impact on power generation.

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The issue has gained political significance after it was reportedly raised in the Maharashtra Legislative Assembly on June 23, 2026, during the ongoing monsoon session.

In his representation, Pittalwar claimed that the Chandrapur power station’s operational performance has witnessed a steady decline in recent years. He pointed to the plant’s reported Plant Load Factor (PLF) of 48.28%, which is significantly lower than the 80% benchmark prescribed by the Maharashtra Electricity Regulatory Commission (MERC) and below the national average.

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He further alleged that the plant’s actual availability stood at only 57.27%, resulting in under-utilisation of thousands of megawatts of installed generation capacity.

The councillor also questioned the frequent technical breakdowns in Units 8 and 9, which are among the newer generating units at the power station. According to the complaint, recurring boiler tube leakages, forced outages and other technical defects have adversely affected generation efficiency and reliability.

A major portion of the complaint focuses on the procurement and beneficiation of coal supplied to the thermal power station.

Pittalwar alleged that substantial amounts are being spent on coal washing and beneficiation processes, but the expected improvement in coal quality and generation efficiency is not being achieved. He cited observations made in MERC’s tariff proceedings, which reportedly noted that the Gross Calorific Value (GCV) improvements expected from beneficiated coal were not reflected in some cases.

The complaint further alleges that poor-quality washed coal supplied to the plant has affected generation performance and increased operational costs.

According to the representation, concerns have repeatedly been raised regarding the quality of coal being supplied to Chandrapur Thermal Power Station despite significant expenditure on coal washing. It has been alleged that nearly 15% of coal is retained by washery operators during the beneficiation process, yet corresponding improvements in efficiency are not visible.

Allegations of nexus

One of the most serious allegations in the complaint is the existence of an alleged nexus involving certain power plant officials, coal washery operators, coal liaison agencies and transportation contractors.

Pittalwar claimed that such an alleged nexus has resulted in crores of rupees in losses to Mahagenco while simultaneously reducing the efficiency, reliability and lifespan of power generation units.

He has sought an investigation into coal procurement practices, transportation contracts, coal quality testing procedures and payments made to various agencies associated with the supply chain.

The representation also contains allegations that black industrial waste generated by sponge iron industries, including units located in the Ghugghus and Tadali industrial areas, may be getting mixed with coal supplied to the thermal power station.

The complaint alleges that such activities, if true, could adversely affect coal quality, increase ash content and reduce power generation efficiency. The councillor has demanded a thorough probe into the allegations and verification of coal quality at various stages of the supply chain.

Impact on equipment and environment

According to the complaint, the use of inferior-quality coal places additional stress on critical equipment such as boilers, mills, electrostatic precipitators (ESP) and ash handling systems.

The representation claims that this leads to higher maintenance expenditure, increased forced outages and reduced plant reliability.

The councillor further alleged that higher ash content in coal contributes to environmental pollution, increases ash disposal costs and poses health concerns for residents living near the power station.

Demand for forensic audit

Among the key demands made in the representation is a comprehensive forensic audit covering the last five years.

The proposed audit would examine coal procurement, coal washing operations, transportation arrangements, quality testing procedures, weighbridge records, GCV assessments, ash content measurements, billing processes and payment approvals.

Pittalwar has urged authorities to appoint an independent agency to conduct the exercise and identify any irregularities, if found.

Questions over ash disposal

The complaint also raises concerns regarding the lifting and distribution of bottom ash and pond ash from the power station’s ash ponds.

The councillor alleged that although permissions have reportedly been granted to multiple vendors, a limited number of entities appear to be handling a disproportionately large share of ash lifting operations, creating concerns over possible monopolisation.

He further alleged that some operators may be transporting ash without following mandatory procedures such as gate entry registration, weighbridge verification and maintenance of official records.

Another allegation pertains to the existence of an unauthorised access route near the ash pond area towards Saivan and Tadali villages.

According to the complaint, ash is allegedly being transported through this route without proper documentation or official verification. Pittalwar has demanded closure of the route and scrutiny of CCTV footage, gate registers, weighbridge records and the role of concerned officials.

The representation notes that Mahagenco’s Managing Director recently visited the Chandrapur power station and reportedly suspended two senior officials, a development that, according to the complainant, raises further questions regarding administrative lapses.

Pittalwar has urged authorities to initiate a detailed inquiry into all allegations and take strict action against those found responsible. He has also argued that improving operational efficiency at the power station could help reduce the financial burden on electricity consumers and strengthen Maharashtra’s energy security.

Copies of the representation have been forwarded to Chief Minister and Energy Minister Devendra Fadnavis, Congress Legislature Party leader Vijay Wadettiwar and Mahagenco Managing Director Radhakrishnan B.

No official response from Mahagenco or the Chandrapur Thermal Power Station administration was available at the time of filing this report.

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