The Hindu Business Line : Rlys, Rosa Power ink pact for transporting coal

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New Delhi Jan. 24 The Indian Railways and Reliance ADA group firm Rosa Power Supply Company Ltd have signed a Coal Transportation Agreement (CTA) under which the Railways would carry an assured quantity of coal to Rosa's thermal plant in Shahajahanpur for 25 years.

The agreement, signed by the East Central Railway Chief Transport Planning Manager, Mr Subroto Mukherjee, and Rosa Power Supply Company Ltd (RPSCL) Director, Mr Ashwini Kumar, is the first agreement between the Railways and any public/private entity for transportation of coal.

As per the agreement, RPSCL will build, own and operate the 600-MW coal-fired power station at Rosa, in Shahajahanpur. The Railways will get committed coal traffic of 27 lakh tonnes per annum from RPSCL for a period of 25 years. The Railways will deploy required number of wagons to ensure delivery of coal to the company and maintain a coal stock at the powerhouse to the tune of 2.85 lakh tonnes. It has undertaken and guaranteed irrevocable placement of rakes, transportation and delivery of coal as provided in the agreement.

Additionally, five per cent of freight charges will be paid by the Railways on the shortfall quantity if cumulative amount of coal delivered is less than or equal to 95 per cent. And the Railways will have to pay 100 per cent of freight charges for short fall quantity if the coal supply is below 85 per cent and coal stock at power station is equal to or less than 19,000 tonnes.

Meanwhile, Reliance has an obligation to load and unload wagons. In one month, a maximum of 92 rakes will be loaded and unloaded by the company excluding such additional rakes, which may be required to maintain the coal stock amount. A premium equal to five per cent of the freight charges will be paid by the company on each tonne of coal loaded up to 27 lakh tonnes. If the Railways transports coal in excess of 25.65 lakh tonnes in any year, the company shall pay to the Railways a bonus of five per cent of the freight charges on the additional quantity actually transported. If the company fails to offer the scheduled quantity in accordance with the provisions of the agreement, it shall pay capacity charges to the Railways. These charges will depend on the actual detention of rakes. And if RPSCL fails to load or unload the rakes placed by the Railways in accordance with the rules, certain coal quantity would be deemed to be delivered depending on the hours of detention.

The CTA is expected to become a norm in future as more and more IPPs enter the power generation sector, the Railway Board Chairman, Mr J.P. Batra, told reporters after the agreement was signed.

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