Railways signs long-term coal transportation agreement

Railways signs long-term coal transportation agreement


New Delhi: Aiming to beat the economic slowdown, the Railway Ministry today signed a long-term coal transportation agreement with GVK Power (Goindwal Sahib) Ltd, for transportation of coal for the 540-MW power plant in Punjab.

Railways will get a committed coal traffic of 2.528 million tonnes per year for a period of 25 years, as per the agreement, Railway Board Chairman K C Jena said.

The agreement assures the supply of coal to the 3,000-crore Goindwal Sahib power plant as per the monthly and annual scheduled quantity. The plant is slated to be commissioned in mid 2011.

Describing the agreement as a win-win situation for both, Jena said the present one “is part of our plan to sign long-term service-level agreements with railway’s major customers".

Chief Traffic Planning Manager, East Central Railway Subrata Mukherjee on behalf of Indian Railways and general manager Debasis Ghosh on behalf of GVL Power (Goindal Sahib), signed the agreement in the presence of senior officials from both sides.

Indian Railways will supply open-type wagons for handling this traffic. The monthly requirement of rakes is expected to be between 50 to 55 to transport coal from Tokisud coal mine in Jharkhand to the plant, a distance of about 1,600 km.

Coal is the single largest commodity transported by railways accounting for over 42% of its freight traffic.

Last year the railways carried 338 million tonnes of coal and this will increase in the current year to over 350 million tonnes, Jena said.