Kothagudem notified area committee was constituted vide G.O.Ms. No.274 dt:29-3-1971 and converted into 1st grade Municipality vide G.O.Ms.No.217 MA dt:8-5-1995. The population of the Municipality as per 2001 Census 79,721 and the extent of the town is 16.10 Sq.Mts. This Municipality is consisting of 33 election wards, there are 31 no of slums (29 Notified slums, 2 Non-notified slums).
Kothagudem is an industrial town in the Khammam district of Andhra Pradesh, about 270 km from Hyderabad. It is also known as the coal town of South India. Kothagudem and palvancha are the twin industrial towns in the state. Kothagudem is located at 17°20′N 80°23′E17.33°N 80.38°E. It has an average elevation of 89 metres (295 ft) above seal level. The North of Kothagudem borders Chhattisgarh state which is approximately 120 km from the town.
Kothagudem heads the Singareni Collieries Company Limited, the coal producing company in South India. It produces 40 million tonnes of coal every year. The Kothagudem Thermal Power station (K.T.P.S.), Nava Bharat Ferro Alloys (N.B.F.A.), Sponge Iron India Limited(S.I.I.L.) are some of the other prominent industries here. It has the only mining school in the state of Telangana, Kothagudem School of Mines (K.S.M.). The area is endowed with rich forests, industries and landscape. Kothagudem is located very near to the temple town of Lord Rama, known as Bhadrachalam. It is approximately 40 km away from Bhadrachalam. The Railway station was originally named “Bhadrachalam Road”, being the closest railway station to Bhadrachalam, an important pilgrimage location of Rama. The Kinnerasani Dam is a popular picnic spot. A rivulet viz Murredu, which is a tributary of River Godavari flows through the town.
The economic pattern of the town shows that the primary activity in the town is coal mining. The population below the poverty line is 54%. Most of the slums dwellers have migrated from the towns, villages of the District and other districts of Telangana region. The majority of slum dwellers belong to BC category.