NTPC Ltd has signed a pact with Inland Waterways Authority of India (IWAI) and Jindal ITF for transportation of imported coal from ports to the power major's 2,100-MW Farakka station in West Bengal, using the inland waterways.

The move is expected to help NTPC improve margins in the long run as inland waterways are among the most cost efficient modes for transporting bulk cargo.

“Considering the current constraints of the Indian port sector, this project is bound to bring paradigm shift in import of dry bulk cargo,” a statement from NTPC said.

The proposed project entails operation of vessels along national waterway- I, connecting Haldia and Allahabad, and will promote use of inland waterways, it said.

The need for the new mode of coal transportation was felt due to the insufficient railway infrastructure, including rakes, to ferry fuel from ports to the power stations.

NTPC and IWAI had signed a preliminary agreement in September 2008 to derive a cost-effective coal transportation mechanism to three coal-starved power stations, including Farakka in West Bengal and Kahalgaon in Bihar.

Jindal ITF, the infrastructure arm of Jindal SAW Ltd., has been selected as an operator by NTPC and IWAI through an international competitive bidding process.

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