The Ministry of Railways has inked Rs 3,000 crore long-term coal transportation agreement with GVK Power for transportation of coal to the company’s 540-mw power plant at Tarantaran in Punjab.
As per the agreement, the Railways will supply coal to the power plant for a period of 25 years and provides for premium charges and penalty charges for both the parties. The Railways ministry had already entered into similar agreements with Rosa Power Supply Co and Nagarjuna Power supply in 2007.
“In the current economic scenario, we need to invest in the infrastructure sector. Transport is very important for the sector. Once the transportation facilities improve, it will boost the infrastructure growth. We are also planning to hike our power generation capacity to 10,000 mw from 2000 mw now,” said GV Krishna Reddy, chairman and MD, GVK Power and Infrastructure.
The deal envisages a committed coal traffic of 2.528 million tonne per annum, for a period of 25 years, to be transported from south Karanpura coal fields in Jharkhand, covering a distance of 1,600 km. The railways guarantees supply of coal to the power house as per the monthly and annual scheduled quantity. The railways will charge premium of 5pc for every tonne of coal delivered and bonus charges of 5pc for coal delivered above 95pc of the committed quantity.
As per the agreement, the Railways will supply coal to the power plant for a period of 25 years and provides for premium charges and penalty charges for both the parties. The Railways ministry had already entered into similar agreements with Rosa Power Supply Co and Nagarjuna Power supply in 2007.
“In the current economic scenario, we need to invest in the infrastructure sector. Transport is very important for the sector. Once the transportation facilities improve, it will boost the infrastructure growth. We are also planning to hike our power generation capacity to 10,000 mw from 2000 mw now,” said GV Krishna Reddy, chairman and MD, GVK Power and Infrastructure.
The deal envisages a committed coal traffic of 2.528 million tonne per annum, for a period of 25 years, to be transported from south Karanpura coal fields in Jharkhand, covering a distance of 1,600 km. The railways guarantees supply of coal to the power house as per the monthly and annual scheduled quantity. The railways will charge premium of 5pc for every tonne of coal delivered and bonus charges of 5pc for coal delivered above 95pc of the committed quantity.
Next Story
