Ministry of Railways & M/S GVK Power Limited sign a long term Coal Transportation Agreement
A long term Coal
Transportation Agreement was signed between Ministry of Railways and M/s GVK
Power (Goindwal Sahib) Ltd. for transportation of
coal for 2X270 MW power plant at Goindwal
Sahib in Tarantaran (Punjab), here today. The signatories
to the agreement included Shri Subrata
Mukherjee, Chief Traffic Planning Manager, East
Central Railway (Hajipur) on behalf of Indian
Railways and Shri Debashis Ghosh, General Manager, M/s GVK Power (Goindwal
Sahib) Limited on behalf of the Company, in the presence of Shri
K.C. Jena, Chairman, Railway Board and other Board Members.
The
agreement assures the supply of coal to the power plant for a period of 25
years and provides for premium charges and penalty charges for both the parties. Ministry of Railways had already entered into
similar agreements with M/s. Rosa Power Supply Co. Ltd. and M/s. Nagarjuna Power supply Co. Ltd. in 2007.
Speaking
on the occasion, Shri K.C. Jena, Chairman, Railway Board said that the present agreement is part of the
Railway’s plan to sign long-term service level agreements with Railway’s major
customers. Shri
Jena pointed out that such agreements were also part of policy announcements
made in the Budget speech of the Ministry of Railways in Parliament during
presentation of the 2007-08 Budget. He said that the agreement will be for a
period of 25 years and is a win-win situation for both the industries and the
Railways. Shri
G.V. K. Reddy, Chairman, GVK Group complimented Railways for its positive and
cooperative attitude.
The salient features of the present
agreement of Ministry of Railways with M/s. GVK Power (Goindwal
Sahib) Ltd. are :-
Ø Railways will get
committed coal traffic of 2.528 million tones per annum for a period of 25
years. Railways guarantees supply of coal to the power house as per the monthly
and annual scheduled quantity.
Ø Indian Railways
will supply BOXN wagons for handling this traffic. Normally 52-55 rakes per month will be
required to be moved.
Ø The company will
pay additional 5 per cent of the freight charges on each tonne
of coal loaded up to annual scheduled quantity (2.528 million tones) in a year.
Ø The company will
pay a bonus of 5 per cent of the freight charges on the additional quantity
actually transported over and above 95 per cent of Annual Scheduled Quantity
(24,01,600 tonnes) in any operating year.
Ø If the company
fails to load/unload as per the provisions, the quantity will be deemed to have
been delivered. Also, if the Company
fails to offer the cumulative monthly scheduled quantity, the company shall be
liable to pay the capacity charges for under-utilization of Railway capacity.
Ø If the monthly
quantity of coal delivered is less than or equal to 95 per cent
, 5 per cent liquidated damages as a percentages of freight charges will
be payable by Railways.
Ø If the coal stock
at powerhouse is equal to or falls below 19,000 tonnes
on any day and cumulative amount of coal delivered in a month is also equal to
or less than 85 per cent then Railways will have to pay the penalty of 5 per
cent on quantity between 85 per cent and 95 per cent and 100 per cent for
shortfall quantity below 85 per cent.
Ø The company will be
responsible for loading and unloading of wagons and creating necessary infrastructure.
Ø The Railways will
make its best efforts to maintain a stock of 2.08 lakh
tonnes at the powerhouse.
M/s. GVK Power (Goindwal Sahib) Limited is setting up a 2X270 MW Thermal
Power Plant in Goindwal Sahib, Punjab. The power house is to be commissioned in mid
2011. For this power house coal to the
tune of 2.528 million tonne per annum is proposed to
be moved from Tokisud North Sub-block coal mine in South Karanpura coal-fields in the State of Jharkhand.
Photo is available
on pib.nic.in
ASK/LK/TR
(Release ID :45443)