In an attempt to reduce coal imports while enhancing domestic availability, the government has firmed up a plan to increase the share of railways in transportation of the fuel to 87% by FY30 from the current 65%. It also aims to eliminate the transport of coal through roads during the period which is currently at 26%.
The government further sees domestic coal production touching 2 billion tonnes per annum starting 2047 with zero imports of either coking or non-coking coal.
Launching the Coal Logistics Policy and Plan in New Delhi, Coal Minister Pralhad Joshi said, “The plan proposes a strategic shift towards a railway-based system in first mile connectivity projects, aiming for a 14% reduction in rail logistic costs and an annual cost saving of Rs 21,000 Crore.”
The government is aiming at 90% mechanised handling of coal by 2030 and will undertake 103 projects with a cost of Rs 24,000 crore. 32 first mile connectivity projects have been completed till now, the minister informed. The government also plans to commission three new railway projects by FY26 and has identified new lines and capacity enhancement for coal traffic movement.
The government projects coal demand to surge to 1.5 billion tonnes by the year 2030 and has targeted at stopping imports of coal by the year 2026. To achieve the same, the coal ministry further aims at increasing the number of rakes per day to 894 to transport doemstic coal by 2030 from current 376 rakes a day. These rakes are projected to carry and transport 1,287 million tonnes of domestic coal.
Not just the government plans at enhancing the railways infrastructure to bolster domestic coal production but has also charted out plans to improve coastal shipping of coal and inland waterways.
The government estimates coastal shipping capacity from the eastern ports to increase to 120 million tonne per annum by 2030. Of this, 80 MTPA will be supplied to power plants, 30 MTPA would be exported to Bangladesh and Sri Lanka, and the remaining will be transported to the steel, cement or non-regulated sector. During FY23, 40 million tonne of coal was despatched to power houses via the Rail-Sea-Rail route.
The government will also develop National Waterway 5 through a special purpose vehicle by Inland Waterways Authority of India, Coal India, the state government and other publis sector undertakings, it said.
The Inland Waterways Authority of India has targeted a modal share of 5% with potential inland water transport volume of 13.25 million metric tonnes of coal by 2030.
Joshi also emphasized the government’s initiative to integrate Rail-Sea-Rail (RSR) transportation and said that it has witnessed a growth of around 50% over the past five years, with plans for further expansion to 120 BT by FY30.
“Additionally, aligned with PM Gati Shakti, 37 critical railway projects have been identified to meet the future coal evacuation demand,” he said. The government has launched 15 railway projects to address multimodal connectivity gaps, out of which 5 projects have already been commissioned.
The launch of the Coal Logistics Plan marks a significant milestone in India’s journey towards modernizing coal transportation, enhancing efficiency, and promoting sustainability, the government said.