NTPC has entered Rs 10,000 crore contract with the Indian Railways for transportation of coal from mines to all its plants through FY20. NTPC has agreed to pay the entire amount in advance in three installments.
In return, the Indian Railways is offering NTPC fixed prices for the rest of FY19 and FY20 and preferential allotment of rakes. This will effectively lower the transportation cost of coal for NTPC -- the transportation time will reduce significantly and any upcoming revision in rail tariffs won’t be applicable to NTPC.

The first instalment of Rs 2,000 crore has already been paid and the remaining amount will be paid in FY19.

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