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Mamuni Das

Co will pay 5% more than Rlys' usual freight charges for coal

New Delhi June 15 After signing a long-term coal transportation agreement with Rosa Power Co Ltd, the Indian Railways on Thursday signed its second such agreement with Nagarjuna Power Corporation Ltd.

The agreement has assurances for certain volumes of coal transportation from both the parties. Penalties are built into the agreement in case assurances are not met from any party.

In this agreement, signed for a term of 25 years, Nagarjuna Power assures Railways of about 2.8 million tonnes of coal traffic each year. In return, Railways assures the company to make available wagons to move coal (a maximum of 89 rakes per month).

The coal, which would be imported, would have to be moved 36 km from New Mangalore Port to a siding near the 1,015-MW thermal power plant near Padubidri (located near Konkan Railway tracks), said official sources.

For transporting the coal by trains, Nagarjuna Power would have to pay freight charges that would be five per cent higher than what Railways levies for coal at any given time. The company would have to pay freight charges for the assured load even if it fails to load or unload the assured quantity as per the provisions.

Stock levels

The Railways has a responsibility to try and maintain an assured stock of 2.85 lakh tonnes of coal at the powerhouse. Further, it would be penalised in case the coal stock drops below the monthly required quantity at the powerhouse.

The loading would be done in a siding of Southern Railway, while the unloading would be done at a siding in Konkan Railway.

The company would create the required infrastructure facilities at their own cost.

Since about five kilometres of the tracks are in Southern Railway, and the rest in Konkan Railway, Indian Railways needs to sign an agreement with Konkan Railway, distributing responsibilities and penalties.

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