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Rail-Sea-Rail (RSR) Initiative

 

Source: ET

 Context: The Ministry of Coal is driving a transformative initiative known as Rail-Sea-Rail (RSR) to revolutionize coal transportation in India.

  • This strategy integrates rail and sea transportation to create an efficient movement of domestic coal, connecting mining sites, ports, and end-users.
  • The goal is to enhance logistical efficiency, reduce transportation costs, and reshape the coal transportation landscape.

 

Stats regarding Coal:

  • Major coal-producing states like Odisha, Chhattisgarh, Jharkhand, and parts of Madhya Pradesh contributed around 75% of domestic raw coal dispatch in FY’23.
  • The Ministry envisions doubling India’s coal production by FY’30, with a projected Compound Annual Growth Rate (CAGR) of approximately 7.7%.
  • Currently, railways handle about 55% of coal evacuation, with a target of increasing it to 75% by FY’30. The committee is promoting RSR coal evacuation with the aim of reaching 112 million tons by 2030, a significant increase from the current 40 million tons. This approach aims to reduce congestion, explore export opportunities, and minimize the carbon footprint.

 

Benefits of RSR Initiative:

  • The Rail-Sea-Rail initiative aims to transform logistics through an eco-friendly coastal shipping mode.
  • Opting for RSR could result in substantial cost savings for end-users in Southern India, potentially cutting logistics costs.
  • Over the past four years, Rail-Sea-Rail coal transportation has seen impressive growth of around 125%.

The Ministry of Coal is committed to refining its Rail-Sea-Rail Coal Evacuation strategy to meet the nation’s growing energy needs and establish a robust energy supply system.