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Coal Ministry's Integrated Rail-Sea-Rail (RSR) Initiative



  Aug 29, 2023

Integrated Rail-Sea-Rail (RSR) of Coal Ministry


Integrated Rail-Sea-Rail (RSR) Transportation for Efficient Coal Movement

 

1. What is the Ministry of Coal's initiative regarding coal transportation?

The Ministry of Coal has introduced a unique initiative to integrate Rail-Sea-Rail (RSR) transportation for the efficient movement of domestic coal. This multimodal transportation system facilitates the seamless movement of coal from mines to ports and then to end-users, enhancing logistical efficiency and reducing transportation costs.
 

2. Why is a well-planned coal evacuation system important for India?

With major coal-producing states like Odisha, Chhattisgarh, Jharkhand, and parts of Madhya Pradesh contributing around 75% of domestic raw coal dispatch, there's a need to enhance coal production. The Ministry of Coal has projected a nearly doubled coal production in India with a Compound Annual Growth Rate (CAGR) of ~7.7% by 2030. An efficient coal evacuation system is crucial to meet this growing demand.
 

3. How is the Ministry of Coal addressing coal movement challenges?

To address coal movement challenges and enhance evacuation, the Ministry of Coal has established an Inter-Ministerial Committee (IMC). This committee aims to create a long-term plan for coal movement within the country. Currently, railways account for approximately 55% of coal evacuation, with a goal to increase this share to 75% by 2030.
 

4. What is the significance of the Rail-Sea-Rail (RSR) mode of transportation?

The RSR mode of transportation offers numerous benefits, including cost-efficiency and environmental friendliness. It is particularly significant in revolutionizing India's logistics industry. By optimizing coal evacuation through RSR, the country aims to make full use of ports along the Southern and Western coasts to transport coal efficiently to regions like Gujarat, Maharashtra, Karnataka, Goa, Tamil Nadu, Kerala, and Andhra Pradesh.
 

5. How does the RSR initiative contribute to cost savings and efficiency?

Efforts to enhance coal evacuation through RSR have the potential to optimize logistics costs. By choosing the Rail-Sea-Rail mode, end-users in Southern India can potentially save around Rs. 760-1300 per ton in logistics costs. This strategy not only improves cost-effectiveness but also contributes to efficient coal delivery to powerhouses in the region.
 

6. What are the broader implications of the RSR initiative for India's coal and logistics sectors?

The RSR initiative reflects the government's commitment to enhancing coal production, transportation, and distribution in India. By integrating multiple modes of transportation, the country can achieve its coal production targets, ensure reliable supply, and strengthen its logistics infrastructure. This initiative aligns with India's goals for sustainable economic growth and energy security.


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