Read More>> NEW DELHI: State-run power producer NTPCNSE -0.72 % has entered into a Rs 10,000-crore contract with the Indian Railways for transportation of coal from mines to all its plants through fiscal 2020.
The agreement entered into earlier this month has come as a boon for the cash-starved national transporter as NTPC has agreed to pay the entire amount in advance in three instalments.
In return, railways is offering NTPC fixed prices for the rest of this fiscal year and the next and preferential allotment of rakes. This will effectively lower the transportation cost of coal for NTPC — the transportation time would reduce significantly and any upcoming revision in rail tariffs won’t be applicable to the country’s largest power producer.