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Coal on barges marks a milestone in India's inland water trade

NTPC to start shipment of coal through Hooghly river from Bay of Bengal to its Farakka plant in Murshidabad district today.

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The maiden effort in the country to transport coal via waterways has just started.

NTPC, India’s largest power producer, would start moving coal on barges from the mouth of the Hooghly river at the Bay of Bengal to Farakka power station in West Bengal from today, Inland Waterways Authority of India (IWAI) assistant director Arvind Kumar told dna.

The trial run of shipment through the mode under which 3 million tonne of coal would be transported via waterway took place last week.

The project mooted five years ago would be run by IWAI on behalf of NTPC.

The development, in coming days, may bring down costs of imported coal and, consequently, lesser power costs.

“The first shipment has been successfully delivered on a trial basis and the shipping minister will formally inaugurate the launch on Monday,” he said.

By shipping coal through a 900-kilometre water route, NTPC would save more than Rs 200 on every tonne brought to its power plant at Farakka in Murshidabad district.

The process of transportation, however, is a complex one as Hooghly river has very low depth forcing the ocean going large Panamax vessels to unload the consignment at the mouth of the river to smaller vessels and then again to barges to be finally taken to the doorstep of the power plant.

Despite such complexities and need to develop related infrastructure, carrying coal via waterways remains an attractive proposition.

A single barge can carry cargo equivalent to 15 rail wagons or 60 trucks and the operating cost of transportation via rail is 2.5 times, as per a study by National Council for Applied Economic Research. NTPC, in 2008, had signed a memorandum of understanding with IWAI for supply of 2-3 million tonnes of imported coal per annum for its Farakka, Kahalgaon and Barh power stations in Bihar from Haldia.

While supplies to Farakka, being executed by a private party, have just started selection of operator for the Barh project is underway. A Request For Proposal for movement of 3 mt of imported coal a year for a period of 10 years to Barh was floated by IWAI in September.

“If these projects are quickly and successfully operationalised they will open the gates for movement of 5-10 mt coal on National Waterway-1. Fly ash can be taken by the barges on their return journey and exported to Bangladesh,” an IWAI document said.

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