Andhra Pradesh has 15,636 million tons of coal reserves and its annual production is 30.27 million tonnes or9.78% of the total production in the country. Coal occurs in the valley of the Godavari river covering an area of 10,350 sq km.

Important deposits occur at Antargaon, Kondika Pahar, Dhantiampalli, Sasti, Khairgura, Bhutongura Moar, Tandur, Kota and Venkutapur in Adilabad district; Yellandu, Kottagudem, Tatapalli, Lingola, Damercherla, Odliavaram, Ranigudem and Rajahzempalli in Khammam district; and Karlapalli and Kumaram in Warangal district. Coal is mainly used in thermal power plants at Kottagudem, Nellore, Ramagundem, Errazada and Hussain Sagar and fer­tilizer plant at Ramagundam.

(a) Singareni coalfield lying 185 km east of Hyderabad is an important coal mining area of Andhra Pradesh. Here 4 coal seams have been iden­tified. The lower most seam called King seam has a thickness of 1.8-2.1 m. Singareni coal contains 7.6% of moisture, 25.25% of volatile matter, 10.65% of ash content and 56.5% of fixed carbon. Although it is a non-coking coal but its quality has been im­proved by the Regional Research Laboratory at Hyderabad.

(b) Kottagudem coalfield has nine coal seams. Anandghani seam (17.7 m) contains A grade coal.