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Coal transport via waterways may save NTPC Rs 450 a ton

India's largest power producer, hopes to save about Rs 450 per tonne on import of 3 million tonne of coal transported through waterways from Sagar Islands in West Bengal to Farakka on barges under a new arrangement with Jindal ITF.

Following this arrangement, announced by Union shipping minister Thiru GK Vasan on Monday, NTPC plans to import a total 9 million tonne through similar facilities from Sagar Islands to Barh in Bihar.

Under a tripartite deal, Jindal ITF, an OP Jindal group company, has set up facilities for unloading 3 million tonne of imported coal every year from mother vessels at Sagar Islands.

This coal will be transported over 500 km through 23 barges to NTPC's thermal power station at Farakka where Jindal ITF has set up a jetty for unloading the coal and moving it to its stockyard on conveyor belts.

Inland Waterways Authority of India has provided JITF navigation facility for these barges.

NTPC hopes to save about Rs 135 crore annually through this arrangement while Kolkata Port stands to lose about Rs 265 crore a year. Kolkata Port will lose about Rs 900 per tonne as a result of this transport arrangement.

However, it will charge Rs 15 per tonne as wharfage - a charge levied for entering waters of a particular port.

Earlier, coal used to be unloaded at Haldia Docks and transported through railways to Farakka, an NTPC official said. Landed cost of imported coal at Farakka through Haldia is estimated about Rs 7,300 per tonne while coal transported through this arrangement will cost about Rs 6,750 per tonne, said the official, who did not wish to be named. "The new arrangement is expected to ease coal availability at the thermal power stations," the official added.

According to Jindal ITF officials, the cost of transporting a tonne of coal from Sagar to Farakka is estimated at Rs 1,150 per tonne. In contrast, NTPC had to earlier spend about Rs 1,540 per tonne on just railways freight and port charges. Two barges full of coal destined for NTPC's Farakka Thermal Power Station were flagged off by the shipping minister on Monday. NTCP has decided to increase the quantum of imported coal from 3 million tonne to 6 million tonne in the near future.

The additional volume will be used at its Kahalgaon Thermal Power Station. The two stations are connected through a dedicated railway track. The company is currently developing a project with IWAI for importing another 3 million tonne of coal from Sagar to Barh in Bihar, 60 km downstream from Patna.

Competitive bids for the project have been invited by IWAI. "Technical tenders will be opened in about 15 days and two companies, Jindal ITF and M Palonji, are in the race," a senior IWAI official said.

Source: The Economic Times