India: NTPC initiated using Inland Water Ways for Coal movement

NTPC started using National Water Way-1 to move its imported coal from Kolkata to its Farakka based power plant with 19 barges through Haldia – Allahabad National Waterway channel. 

India’s largest thermal power generation company NTPC’s has started moving coal from Friday, through Inland waterways from Sandhead port to its Farakka based power plant.

The shipment of imported coal will be transported through Kolkata deep sea port (Sandhead) which is 660 Km away from its Farakka Power Plant by using Haldia-Allahabad National Waterway channel of 1,600 Km long.

The move is expected to help NTPC improve margins and to save around 20% of logistics cost, as in the long run  inland waterways are among the most cost-efficient modes to transport bulk cargo and most important will reduce NTPC’s dependency on Railways.

For NTPC’s 2,600 MW Farakka plant and 1340 MW Khalgaon plant around 3 MnT of coal will be imported every year to meet domestic coal shortage, as planned. However it is noted that M/s Coal and Oil, Dubai, has a contract with NTPC to supply 1.5 MnTof thermal coal and to handle its inland shipping operations NTPC has contracted Jindal ITF.

NTPC is also planning to use rivers to move coal for its planned plants at Barh near Patna and Bongaigaon in Assam. However Barh project will be commissioned in current financial year with first 660 MW unit and the total project capacity will be 3,300 MW, which will require 16 MnT of coal per annum.

NTPC’s use of inland water ways is intimately tracked as almost more than 10 power plants are located along the Ganga that are operated by the Private and PSU companies.

However it would not be that easy for private power firms to use inland waterways to move imported coal as no surety with development of infrastructure for loading and unloading.

India’s coal imports were increased to 137 MnT in 2012-13 and in current financial year it is estimated to be around 150 MnT.  Inland waterway projects will transform the Indian logistics sector on handling of imported dry bulk cargo, also will be a big relief for Railways.