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.
