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AP-Genco is planning to establish a Small Modular Reactor and a thermal power plant in Srikakulam district in collaboration with Coal India Limited, aiming to diversify its energy mix and reduce carbon emissions. The project is in its early stages, facing challenges related to cost and regulatory issues, while AP-Genco also focuses on completing Pumped Storage Hydropower Plants to meet grid demands. The final location for the thermal plant will be influenced by coal costs and transportation logistics, with potential sites in Srikakulam and Talcher, Odisha.