India aims to double coal production by 2030

25 Aug 2023 CW Team

New Delhi: The coal ministry has set an ambitious goal to nearly double India's coal production by fiscal 2030, achieving a compound annual growth rate (CAGR) of approximately 7.7%.

In FY23, major coal-producing states such as Odisha, Chhattisgarh, Jharkhand, and parts of Madhya Pradesh contributed a staggering 75% of India's raw coal dispatch. To sustain this momentum and support the nation's growth, enhanced coal production is imperative.

To tackle this challenge, the coal ministry has adopted a multifaceted approach, including the promotion of Rail-Sea-Rail (RSR) transportation. This innovative multimodal system is poised to revolutionise the domestic coal movement, focusing on efficiency enhancement, cost reduction, and logistics optimisation.

An Inter-Ministerial Committee (IMC) has been established, involving representatives from the ministries of power, railways, ports, shipping, and waterways. This committee is tasked with formulating a comprehensive, long-term strategy for nationwide coal transportation.

Presently, railways account for a significant 55% of coal evacuation, a proportion the Ministry of Coal aims to elevate to 75% by FY30. The ministry's commitment to expanding coal evacuation and diversifying evacuation routes to mitigate congestion has led to a series of measures endorsing RSR as the primary mode of coal evacuation.

The ministry underscores the need to augment coal evacuation and enhance alternative evacuation routes to mitigate congestion, such as the RS/RSR mode by FY30. The committee has proposed measures to promote RSR evacuation of coal, targeting 112 MT by 2030, up from the current 40 MT. This strategy offers diverse benefits, including reduced congestion on the All-Rail Route, potential export opportunities, and a significantly lower carbon footprint compared to the existing system.

The coastal shipping mode, an economical and eco-friendly solution, has the potential to transform India's logistics landscape. Ongoing efforts to enhance coal evacuation through initiatives like RS/RSR aim to optimise port capacity utilisation along the Southern and Western coasts, facilitating efficient coal transportation to powerhouses in multiple states.

The ministry stated, "Initiatives are underway to optimise the costs of delivering coal through RSR, potentially saving around Rs. 760-1300 per ton in logistics costs for end users in Southern India."

New Delhi: The coal ministry has set an ambitious goal to nearly double India's coal production by fiscal 2030, achieving a compound annual growth rate (CAGR) of approximately 7.7%. In FY23, major coal-producing states such as Odisha, Chhattisgarh, Jharkhand, and parts of Madhya Pradesh contributed a staggering 75% of India's raw coal dispatch. To sustain this momentum and support the nation's growth, enhanced coal production is imperative. To tackle this challenge, the coal ministry has adopted a multifaceted approach, including the promotion of Rail-Sea-Rail (RSR) transportation. This innovative multimodal system is poised to revolutionise the domestic coal movement, focusing on efficiency enhancement, cost reduction, and logistics optimisation. An Inter-Ministerial Committee (IMC) has been established, involving representatives from the ministries of power, railways, ports, shipping, and waterways. This committee is tasked with formulating a comprehensive, long-term strategy for nationwide coal transportation. Presently, railways account for a significant 55% of coal evacuation, a proportion the Ministry of Coal aims to elevate to 75% by FY30. The ministry's commitment to expanding coal evacuation and diversifying evacuation routes to mitigate congestion has led to a series of measures endorsing RSR as the primary mode of coal evacuation. The ministry underscores the need to augment coal evacuation and enhance alternative evacuation routes to mitigate congestion, such as the RS/RSR mode by FY30. The committee has proposed measures to promote RSR evacuation of coal, targeting 112 MT by 2030, up from the current 40 MT. This strategy offers diverse benefits, including reduced congestion on the All-Rail Route, potential export opportunities, and a significantly lower carbon footprint compared to the existing system. The coastal shipping mode, an economical and eco-friendly solution, has the potential to transform India's logistics landscape. Ongoing efforts to enhance coal evacuation through initiatives like RS/RSR aim to optimise port capacity utilisation along the Southern and Western coasts, facilitating efficient coal transportation to powerhouses in multiple states. The ministry stated, Initiatives are underway to optimise the costs of delivering coal through RSR, potentially saving around Rs. 760-1300 per ton in logistics costs for end users in Southern India.

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