Kothagudem is an industrial town and municipality 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 . 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 is the commercial capital of khammam district.
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 ventures ltd., National Mineral Development Corporation (NMDC) are some of the other prominent industries here. It has the only mining school in the state of Andhra Pradesh, 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.