Four logistics companies have submitted bids to the Inland Waterways Authority of India (IWAI) to create and operate necessary infrastructure for transportation of a minimum of three million tonnes (mt) of imported coal to NTPC power plants at Farakka in West Bengal and Kahalgaon in Bihar through the Ganges.

Depending on the viability, the scope of the project may be expanded to eight million tonnes.

IWAI – the sole authority to ensure navigability and navigation through the inland waterways – had invited bids on NTPC's behalf. The project is a maiden attempt on the part of any power utility in India to reduce dependence on the overstretched rail network.

NTPC consumes approximately 160 mt of coal – including 12 mt of imported varieties – annually to generate 33,000 MW of power.

According to sources, having extended the deadline for submission of bids at least twice since March, IWAI finally closed the tender on April 27 with four bids submitted by Kolkata-based TM International Logistics, Jindal ITF, Chennai-based Good Earth and a consortium led by Sri Avantika. Evaluation of bids is expected to be over in May.

Cost-competitive

Scheduled to be operational in mid-2012, the project aims to unload coal from large “Panamax” vessels on high sea at Sandheads in Bay of Bengal and carry the same by barges to Farakka on the Ganges or National Waterway-I, as a cost-competitive solution compared to Railways. From Farakka, part of the coal will be transported to Kahalgaon through the existing “merry-go-round” rail network. Rough estimates suggest that the project requires a capital investment of Rs 200 crore.

Earlier, 21 companies submitted expressions of interest (EoI) for the project. However, the enthusiasm appeared to have died down in the bidding phase. According to a company which submitted EoI but shied away from submitting the bid, doubts over the navigability through the Ganges round the year was a major concern.

According to Mr D. Sinha, Professor of Indian Institute of Foreign Trade (IIFT), in the industrialised and even in the emerging economies such as China, bulk of the coal is transported through the inland waterways. “India should follow the trend,” he said.

Railways, main carrier

According to Mr N.C. Jha, Chairman of Coal India, the situation is completely different in India where nearly 50 per cent of coal is transported by Railways. Another 20-22 per cent is transported through dedicated rail “merry-go-round” infrastructurecreated by the power utilities and the rest is transported by road.

With movement of coal emerging as a major stumbling block to increase the availability of coal either through domestic sources or imports; CIL is also looking forward to inland waterways to offer new logistics options.

Related Topics
comment COMMENT NOW