Revolutionizing Coal Transportation with Rail-Sea-Rail Initiative

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Introduction

The Ministry of Coal is leading a transformative charge in coal transportation through its Rail-Sea-Rail (RSR) initiative. This innovative approach seeks to integrate rail and sea transportation for efficient movement of domestic coal. By seamlessly linking mining sites, ports, and end-users, the RSR strategy aims to reduce transportation costs and enhance logistical efficiency, reshaping the coal transportation landscape.

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Harnessing the Potential of Rail-Sea-Rail Initiative

In the fiscal year FY’23, major coal-producing states like Odisha, Chhattisgarh, Jharkhand, and parts of Madhya Pradesh contributed nearly 75% of the total domestic raw coal despatch. Recognizing the need to meet growing coal demands, the Ministry of Coal projects a nearly double coal production in India by FY’30, with a Compound Annual Growth Rate (CAGR) of ~7.7%.

To achieve this ambitious goal, a robust coal evacuation system is imperative. This has led to the formation of an Inter-Ministerial Committee (IMC), led by AS, Coal, in collaboration with the Ministries of Power, Railways, and Ports, Shipping, and Waterways. The IMC’s mandate is to devise a comprehensive plan for effective coal movement. Currently, railways contribute to approximately 55% of coal evacuation, with a target to elevate this share to 75% by FY’30. The Ministry emphasizes the need to enhance coal evacuation and diversify evacuation routes, including the RS/RSR mode, by FY’30. The committee has laid out measures to promote RSR coal evacuation, with the goal of reaching 112 MT by 2030, a substantial increase from the current 40MT. This strategic move aims to alleviate congestion, explore export avenues, and notably reduce carbon footprint compared to conventional methods.

Transforming Logistics with Rail-Sea-Rail Initiative: A Green Approach

The coastal shipping mode offers an economical and eco-friendly avenue that holds the potential to revolutionize India’s logistics landscape. The ongoing efforts to augment coal evacuation, including the RS/RSR mode, strive to fully harness the capacity of ports along the Southern and Western coasts. This optimized approach ensures efficient coal transportation to powerhouses in states such as Gujarat, Maharashtra, Karnataka, Goa, Tamil Nadu, Kerala, and Andhra Pradesh. Opting for RSR holds the promise of significant cost savings for end-users in Southern India, potentially reducing logistics costs by approximately Rs. 760-1300 per ton. The Ministry’s steadfast commitment has yielded impressive results, with Rail-Sea-Rail coal transportation witnessing remarkable growth of around 125% over the past four years.

A Holistic Strategy for Resilient Energy

The Ministry of Coal’s Rail-Sea-Rail initiative resonates with a “Whole of Government” approach, addressing the multifaceted challenges of efficient coal evacuation through collective efforts. With India’s coal production set to surge in the coming years, Rail-Sea-Rail emerges as a pivotal alternative for efficient coal evacuation, ensuring an uninterrupted power supply to the nation. The Ministry continues to refine its Rail-Sea-Rail Coal Evacuation strategy, demonstrating its unwavering commitment to meeting the nation’s surging energy demands and establishing a resilient energy supply system.

Priti Palit

Priti Palit, an accomplished edtech writer, boasts a wealth of experience in preparing candidates for multiple government exams. With a passion for education and a keen eye for detail, she has contributed significantly to the field of online learning. Priti’s expertise and dedication continue to empower aspiring individuals in their pursuit of success in government examinations.

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