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