The Ministry of Coal has launched an initiative to enhance Rail-Sea-Rail transportation, with the goal of integrating RSR transportation for the efficient transit of domestic coal. This multimodal transportation system enables the smooth delivery of coal from mines to ports and then to end customers, lowering transportation costs and enhancing logistical efficiency.
The major coal-producing states of Odisha, Chhattisgarh, Jharkhand, and sections of Madhya Pradesh accounted for nearly 75% of total domestic raw coal despatch in the fiscal year FY’23. Recognizing the need for expanded coal production, the Ministry of Coal has forecast that coal production in India will nearly double by FY’30, with a CAGR of 7.7%.
A well-planned and effective coal evacuation system is required to accommodate the expanding demand. As a result, the Ministry of Coal established an Inter-Ministerial Committee (IMC) led by AS, Coal and comprised of the Ministries of Power, Railways, and Ports, Shipping, and Waterways, with the goal of developing a long-term plan for coal movement in the country.
Railways currently account for approximately 55% of coal evacuation, with a goal of increasing this proportion to 75% by FY’30. The Ministry of Coal emphasizes the importance of increasing coal evacuation and improving alternative ways of evacuation to minimize congestion, such as the RS/RSR mode, by FY’30. The committee has suggested numerous ways to increase RSR coal evacuation to 112 MT by 2030, up from the current 40MT.
Rail-Sea-Rail transportation
The coastal shipping mode of transportation, which is a cost-effective and environmentally friendly method of moving products, has the potential to transform India’s logistics industry. The current initiatives to supplement coal evacuation, such as RS/RSR, aim to maximize port capacity utilization along the Southern and Western coasts. This will allow for more effective coal transportation to power plants in Gujarat, Maharashtra, Karnataka, Goa, Tamil Nadu, Kerala, and Andhra Pradesh. Efforts are being made to reduce the cost of shipping coal via RSR. For end customers in Southern India, using Rail-Sea-Rail might save roughly Rs. 760-1300 per ton in logistics expenditures. Currently, the overall cost of supplying coal from MCL (Paradip) to Western/Northern TPPs increases by roughly Rs 2500/ton over ARR.
The Ministry of Coal’s efforts to promote Rail-Sea-Rail are bearing fruit, with Rail-Sea-Rail transportation of coal increasing by roughly 125% over the last four years. With India’s coal production forecast to roughly double in the next seven years, rail sea rail as an alternate mode of transportation becomes critical for effective coal evacuation to consuming centers in India, assuring a seamless and uninterrupted power supply.
The IMC proposals are part of a “Whole of Government” strategy by all Ministries to address the issues of efficient coal evacuation to destinations.
The IMC proposals are part of a “Whole of Government” strategy by all Ministries to address the issues of efficient coal evacuation to destinations.
The Ministry of Coal is taking all necessary steps to improve the Rail-Sea-Rail Coal Evacuation strategy in order to fulfill the nation’s expanding energy demands on a constant basis, guaranteeing a resilient and efficient energy supply system.
Add Comment