Prospects for Coal
Movement through IWT
IWAI
November 13, 2009
Present Scenario
• Thermal Power Plants main source of energy (70%) inIndia
• Major coal fields located in Eastern India – Jharkhand,West Bengal, Orissa, Chhatisgarh
• Thermal Power Plants located all over the country
• Timely transportation of coal from coal fields to TPSmajor challenge
• In 2006-07 railways evacuated about 53.4%; merry-go-round - 23.9% and road - 22.5% of total coal off-take
• Share of road transport is going up & railways declining
• Shortfall in wagon availability along with 120% lineoccupancy ratio on Eastern, South Eastern & East Coastrailway routes, compounds problem for CIL
Agenda -1
Meeting Coal requirement of NTPC
Thermal Power Plants located at
Farakka, Kahalgaon & Barh
KARAGOLA
HALDIA
KOLKATA
PAKUR
FARAKK
A
BHAGALPUR
PATNAVARANASI
CHUNAR
ALLAHABA
D
U T T A R P R A D E S
H
M A D H Y A P R A D E S H
C H H A T T I S G A R
H
O R I S S A
J H A R K H A N D
B A N G L A D E S
H
B I H A R
W E S T B E N G A
L
S I K K I M
I N D I A
BALLIA
LUCKNOWFAIZABAD
KANPUR
REWA
28
29
28A
2
7
7 SASARAM
3
0
MUZZAFARPUR28
28
31
PURNIA
DALKOLE
31
34
2
6
35
GAYA
31
HAZARIBAG DHANBAD
ASANSOL
BARDHAMAN
KHARGPUR
60 5
5
6
33
215
21
5
23 41
20
0
RANCHI23
JAMSHEDPUR
32
33
83 77
34
86
56
CHHAPRA19
85
BUXA
R
84
25
24
N
Bay of Bengal
Legend
Declared waterway
Road
Rail
Important places
National Waterway-1Ganga – Bhagirathi – Hooghly river
systemHaldia(Sagar island) – Allahabad –1620 km
BAR
HKAHALGAO
NMEZ
A
BAR
AKARCHAN
A
Coal shortage for NTPC plants in
WB & Bihar
• CEA reports reveal that Farakka & KahalgaonSTPS are facing coal shortage due to inadequatecoal availability in linked mine ECL (Rajmahal)
• Due to Andal - Santhia singleline section,railways could not supply more than 7 rakes perday from other source including imported coal
• NTPC has reported annual coal shortfall of 1.2 mtfor Farakka & 1.6 mt for Kahalgaon STPS
• Unit-6 of Farakka (500 MW) likely to becommissioned by Dec.2010
• Units of Barh STPS of NTPC are likely to becommissioned beginning late 2012
Coal Movement through IWT
• MoU between IWAI & NTPC signed in Sept.2008
• Feasibility study by IL&FS coal received at Trans-shipper placed at Sagar Islands
can be taken to Farakka & Kahalgaon through IWT
at rates competitive with present payments
• Hitch is that a long term contract for supply of coalthrough IWT for about 7-10 yrs. needed as supplier hasto make capital investment of over Rs.300 crore
• In case coal is imported, NTPC / its agents will need tofirm up long term coal import contracts
• Ministry of Coal / Power will need to permit NTPC toimport 3 mt coal through IWT for Farakka & Kahalgaonfor about ten years
Way Forward
• No change in existing practice of awarding contract ormaking payments
• IWAI plays the role of facilitator / regulator
• Parties to bid for bringing coal from coal mine / trans-shipper to coal stack yard of Farakka & Kahalgaon STPS
• Ministry of Water Resources to give permission for rightof use of eight acres of vacant land at Farakka for settingup coal handling equipments for ten years to MoS / IWAIwith clear understanding that it would be made availableto the successful bidder
• FBPA would begin to receive rental value from an assetlying unutilized
• NTPC to make investment in setting up coal handlingfacilities on river terminal at Kahalgaon & Barh
Way Forward
• NTPC gets assured and economically viable supply ofcoal for its ‘coal starved’ power plants
• Movement of coal through IWT commences on NW 1paving the way for similar movement to other existing /upcoming power plants
• Muzaffarpur, Barkeshwar, Titagarh & Tenughat TPS arealso suffering from inadequate linkage
• Multi-modal transport logistics works to advantage ofrailways / road transport / IWT / consumers
• Power starved eastern region of country benefits
• Coal supply can commence within 18 months of awardof contract
• IWAI develops Haldia river terminal as a PPP project
• IWT emerges as a supplementary mode for movementof bulk cargo
Agenda - 2
Evacuation of coal from
Mahanadi Coal Fields (MCL)
through IWT
KOLKAT
A
DHAMR
A
TALCHE
R
MAHANADI
BRAHMANI
CUTTAC
K
PARADEEP ( PORT)
CHARBATI
A
MANGALGA
DI
EAST COAST CANAL
MATAI R.
MAHANADI DELTA
GEONKHA
LI
CHHATTISGARH
O R I S S A
J H A R K H A N D
W E S T B E N G A L
BALASOR
E
5
215
42
200
6 215
6 41
33
KHARAGPURBAHARAGOR
A
SAMBALPU
R
JAJPUR
215
KENDUJHARGA
RH
20
0
DEOGARH
6
JAMSHEDPUR
DHAMRA R.
N
Bay of Bengal
Legend
Declared waterway
Road
Rail
Important places
HALDI
A
National Waterway-5(East Coast Canal integrated with Brahmani and Mahanadi delta river
system)
River distanceCanal: Geonkhali - Charbatia 217 kmMatai riverCharbatia – Dhamra 40 kmBrahmani, kharsua & Dhamra river systemTalcher – Dhamra 265 kmMahanadi delta river Mangalgadi – Paradeep 101 kmTotal length 623 km
Hirakud
Reservoir
Rengali
Dam
Samal Barrage
BHUBANESWA
R
Talcher195
Mid Stream
Transhipment Point 220
Haldia
Farakka
526
148
Distances
Phase 1: Haldia-Farakka (Water)-526 Km.
Phase 2: Farakka-Kahalgaon (Water)-148 Km- Barh- 190 Km.
Phase 3: Paradip-Haldia (Coast)-220 Km.
Talcher-Paradip (Rail)-195 Km.
Paradip Port
BarhKahalgaon
190
Domestic coal from
Mahanadi Coal fields
11
Dilemma of CIL• CIL is facing problems in evacuation of coal from
Mahanadi Coal Fields (MCL) & North Eastern CoalFields (NEC)
• Capacity constraints of railways; saturation of Paradipport
• Increased coal production cannot be taken to consumers
• Consumers – Power Plants, secondary Steel producers,sponge iron units - located mainly in North, East, NorthEast
• Explore possibility of tapping IWT for evacuation of coal
• NW 5 has been notified by GoI in Nov. 2008 Talcher – Dhamra – 265 km. stretch
Manglagadi to Paradip -101 km.
Five barrages with navigation locks to come up at an estimatedcost of Rs.2000 crore
Its full development for coal movement may require investmentsof about Rs.3000 crore – fairway, terminals, loading / unloadingfacilities, vessels
Way Ahead
• IWAI & CIL can enter into a MoU to explore possibility ofutilizing IWT for evacuation of coal from Mahanadi CoalFields & NEC to various consumption points on NW 1 &NW 2
• Feasibility of setting up coal dumps at suitable locationson NW 1 & 2 to cater to the requirements of secondarysteel producers, sponge iron units etc. can also beexamined
• IWAI to get the feasibility studies done through IL&FS –its PDO
• Cost of studies to be met equally by IWAI & CIL
• Possibility of capital investment by CIL, NTPC, IWAI,logistics companies can also be explored by IL&FS
• Development of Talcher – Dhamra – Paradip portion ofNW 5 in the next 36-48 months possible
THANK YOU