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Tuesday, May 31, 2011

NTPC approaches Indian Railways for a sharp reduction in freight rate for coal ash generated by its power plants


Facing difficulties in complying with the ministry of environment and forests’ (MoEF) stipulation on utilisation of coal ash generated by its power plants, NTPC has approached the Indian Railways for a sharp reduction in freight rate for the hazardous material.

Power plants are required to equip themselves to utilise 100% coal ash in seven years from their operations, as per the guidelines laid down by the MoEF. However, NTPC is facing difficulties in complying with the MoEF’s stipulation due to lack of demand for the material, which has applications in key areas like road construction, cement and asbestos manufacturing, agriculture besides abandoned mines.
NTPC has asked the Railways to reduce freight rate for flyash to one-third of the prevailing rate.
“We have written a letter to the Railway board member (Traffic) recently seeking a two-third reduction in the freight rate,” an NTPC official told FE.
As the emphasis on gainful utilization of flyash has increased, the usage over the years has also increased. NTPC’s ash utilisation increased from meagre 0.3 million tonne in 1991-992 to 26 million tonne in 2010-11. But utilisation rate is still just 55% of the total ash generated by the central utility's plants during the year.
Given the hazardous nature of flyash, the power ministry is also putting pressure on NTPC to progressively increase its ash utilitisation level. For example, NTPC has to accept an annual target on ash utilisation in the memorandum of understanding signed with the power ministry every year.
But despite the growing urgency, NTPC is feeling difficulties in stepping utilisation of generated fly ash. With its ash utilisation rate just at 55%, the company is still far from complying with the MoEF’s guidelines.

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