Talks on for easier ways to transport eastern India’s coal

08 Jul 2022 CW Team

The Centre is evaluating alternative routes for moving coal produced in eastern India, primarily from the fields of South Eastern Coalfields (SECL) and Mahanadi Coalfields Ltd (MCL).

Discussions on rationalising coal movement have been taking place over the last 15 days. Shipping ministry officials said coastal shipping routes have been proposed to ease the congestion on railway lines and rake shortages during peak demand seasons.

According to shipping ministry officials, the movement of coal from Paradip to other ports along the eastern coast is feasible considering the vacant capacity at ports in the region and proximity to power plants in southern India.

A longer route of moving coal from eastern India to Gujarat is also being considered. This route was proposed by an Asian Development Bank (ADB) study commissioned by the Centre. According to ADB's estimates, certain thermal power plants have existing linkages with SECL, which is about 600 km from Paradip port. Shifting the linkage from SECL to MCL will reduce the first mile distance by 200 km from mine to load port. It will also reduce the total cost of coastal shipping, which will be lower than current rail cost from SECL.

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