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Railways to transport coal for NTPC as part of deal

As part of the deal, NTPC will pay the Railways the entire amount in advance in three installments which will take some pressure off the stressed Railways

New Delhi: Bringing an air of relief for the cash-strapped Indian Railways, state-run power producer NTPC has inked a Rs 10,000 crore contract with them for transportation of coal from mines to all its plants through fiscal 2020. As part of the deal, NTPC will pay the Railways the entire amount in advance in three instalments which will take some pressure off the stressed Railways. In return, Railways has offered to keep the prices fixed for NTPC for the rest of this fiscal year and the next and preferential allotment of rakes.

Apart from benefitting the Railways, the deal will also lower the cost of transportation of coal for NTPC. Also, the transportation time will be cut down significantly and any upcoming revision in rail tariffs won’t be applicable to the country’s largest power producer.


Apart from benefitting the Railways, the deal will also lower the cost of transportation of coal for NTPC. Also, the transportation time will be cut down significantly and any upcoming revision in rail tariffs won’t be applicable to the country’s largest power producer. “NTPC will pay the Indian Railways a freight advance of Rs 10,000 crore inclusive of GST, towards payment of transport of coal for FY18-19 and FY19-20,” a senior railway ministry official said. He also added that the first instalment of Rs 2,000 crore has already been paid and the remaining amount would be paid in the current fiscal.