State-owned power generator NTPC Ltd has granted a contract to transport 1.3mn tonne of the 5 MT additional fuel offered by Coal India, reported Economic Times. 

A senior NTPC executive said: “In spite of so many odds, NTPC has already awarded contract for 1.3 MT and the process of award for the balance quantity is in progress in war footing wherever possible.”

Recently, NTPC was offered coal after its stocks was dropped. The ET report reads: “It was offered 1.5 MT from Central Coalfields (CCL), 0.5 MT from Bharat Coking Coalfields (BCCL) and 0.5 MT from Northern Coalfields (NCL), among others.”

According to the executive, the additional expense incurred in transportation will in turn increase the cost of production, which will then be sold to customers.