Govt targeting streamlined rail-sea-rail transport for coal efficiency

28 Aug 2023 CW Team

The initiative to promote Rail-Sea-Rail (RSR) transportation for the efficient movement of domestic coal has been taken by the Ministry of Coal. The main goal of this initiative is to integrate the Rail-Sea-Rail system for the smooth movement of coal within the country. This transportation system allows coal to be transported seamlessly from mines to ports and ultimately to end-users. As a result, it leads to a reduction in transportation costs and an improvement in logistical efficiency.

In the fiscal year FY 2023, the states that are major producers of coal, including Odisha, Chhattisgarh, Jharkhand, and certain parts of Madhya Pradesh, were responsible for around 75% of the total dispatch of domestic raw coal. The Ministry of Coal has acknowledged the necessity of increasing coal production and has predicted that India's coal production will nearly double with a Compound Annual Growth Rate (CAGR) of 7.7% by FY 2030.

To address the rising demand, there is a requirement for a well-structured and effective coal evacuation system. With this objective, the Ministry of Coal has established an Inter-Ministerial Committee (IMC) with the purpose of devising a long-term plan for coal movement in the nation. Presently, railways handle approximately 55% of coal evacuation, and there is a goal to raise this percentage to 75% by FY 2030.

The Ministry of Coal is underscoring the importance of enhancing coal evacuation methods and diversifying alternative evacuation routes to prevent congestion. The committee has put forth a number of recommendations to encourage the evacuation of coal through the RSR mode, aiming to achieve a target of 112 million tonne (MT) by 2030, a substantial increase from the current 40 MT.

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