Coal news and updates

NTPC set to get first shipment of coal through waterways

November 8: After prolonged delay, power utility NTPC is set to receive the first shipment of coal for its Farakka thermal power station in West Bengal through the inland waterways, a company official told ICMW.

"We expect the first shipment of coal through the inland waterways to arrive at the plant today or tomorrow," the official said. The shipment has already been despatched from Sagar port via seven-eight barges. Two barges have already reached Kolkata which are awaiting customs clearance at the Kolkata Dock Complex (KDS) of the Kolkata Port Trust (KoPT)," he added.

Two of the barges, carrying about 3,500 tons of coal, had arrived at KDS a few days back, but was held up temporarily for customs clearance, the official said.

The official said that as part of the strategy, a ship carrying the material berthed at Sagardweep and the material was loaded to barges through transloaders.

The shipment, once completed, will mark the first transportation of coal in India through the inland waterways (or riverine channels) which are managed by the state agency, Inland Waterways Authority of India (IWAI).

In order to make the channels easily navigable, IWAI had floated a request for proposal (RFP) for the movement of 3 mt of coal through NW1 for a period of 10 years through the inland waters from Paradip and Haldia. Two companies had placed bids against the tender, namely Jindal ITF and a consortium of two firms, M Pallonji & Company Pvt Ltd and Goa-based Sociedade de Fomento Industrial Pvt Ltd.

IWAI had earlier allotted to a subsidiary of JSW Group one similar project for movement of coal to NTPC's Barh plant in Bihar, but the actual transportation was delayed due to various issues, industry sources said.

Commenting, the NTPC official said, shifting to this new transportation mode is going to reduce the logistics costs for the country's largest power utility and also its dependence on Indian Railways for rail rakes.

"However, there will not be any substantial time saving as such, but uncertainty attached to the availability of rail rakes will definitely be reduced. We will continue to transport coal through the rakes as well, but only when they are readily available," he added.

Meanwhile, the government has announced that National Waterways 4 and National Waterways 5 are expected to soon become commercially viable, sources said.