With a focus on streamlining the movement of domestic coal, the Ministry of Coal is actively promoting the Rail-Sea-Rail (RSR) transportation strategy. The strategy involves combining rail transportation with sea routes to facilitate seamless transfers of coal from mines to ports and finally, to end users.
Understanding Rail-Sea-Rail (RSR) Transportation
RSR is an ingenious multimodal transportation strategy that integrates rail and sea routes for the enhanced logistical efficiency of coal transportation. It is developed to address challenges related to the effective movement of coal from production centres to consumption sectors. A significant portion of domestic raw coal dispatch, approximately 75%, originated from major coal-producing states like Odisha, Chhattisgarh, and Jharkhand.
Addressing Coal Movement Challenges
Efficient coal movement from production to consumption regions poses a significant challenge. To meet India’s growing energy demand, the Ministry of Coal has projected a substantial increase in coal production, targeting a Compound Annual Growth Rate (CAGR) of approximately 7.7% by FY’30.
Leveraging Coastal Shipping
Coastal shipping, an economical and environmentally friendly way of transporting goods including coal, forms a part of the RSR initiative. There are ongoing efforts to maximize the potential of ports along India’s Southern and Western coasts to ensure efficient coal movement to powerhouses in states like Gujarat, Maharashtra, Karnataka, Goa, Tamil Nadu, Kerala, and Andhra Pradesh.
Cost Optimization and Competitive Pricing
Opting for RSR could result in significant cost savings, especially for end-users in Southern India. These cost savings can make domestically produced coal more competitive against the total landed cost of imported coal.
Reducing Congestion and Enhancing Logistics
Currently, railways handle about 55% of coal evacuation. However, the Ministry of Coal aims to increase this share to 75% by FY’30. One of the primary goals of the RSR initiative is to reduce congestion on traditional rail routes, which often face bottlenecks due to high traffic. The focus on alternative routes, including RSR, is expected to alleviate this congestion and streamline logistics.
Growth and Future Prospects
Over the past four years, the Rail-sea-rail transportation of coal has seen an increase of approximately 125%. The success of the RSR strategy is crucial in ensuring an uninterrupted supply of coal to consumption centres across the country, considering that India’s coal production is expected to nearly double within the next seven years.
Challenges in Rail-Sea-Rail Coal Evacuation
Implementing the RSR transportation model requires robust rail and port infrastructure. Risk mitigation strategies need to be developed to address potential challenges, such as adverse weather conditions and technical glitches.
Initiatives Related to the Coal Sector in India
Several initiatives have been launched in India related to the coal sector, including UTTAM (Unlocking Transparency by Third Party Assessment of Mined Coal), SHAKTI (Scheme for Harnessing and Allocating Koyala (Coal) Transparently in India), and the Online Coal Clearances System. These aim to promote transparency and efficiency in coal production and distribution.
Coal: An Overview
Coal, known as ‘Black Gold’, is a type of fossil fuel found in sedimentary rocks. It is a conventional source of energy and widely available. It fuels industries such as iron and steel, steam engines and generates electricity, which is referred to as thermal power. Major Coal producing states in India include Jharkhand, Odisha, Chhattisgarh, West Bengal, Madhya Pradesh, and Telangana. Indian coal is characterized by high ash content and low sulphur content.
Different Types of Coal in India
The types of coal found in India range from Anthracite, Bituminous, Lignite to Peat. These categories differ in terms of carbon content and geographical availability across the country.
An Insight into UPSC Civil Services Examination Questions
The above information significantly addresses previous year questions of the UPSC Civil Services Examination related to Indian’s coal sector’s nationalization, coal production, shortages, and characteristics of Indian coal.
