The Business Bytes
THEBUSINESSBYTES BUREAU
NEW DELHI, FEBRUARY 28, 2025
In a significant boost to coal logistics, the Ministry of Coal has successfully expanded the Rail-Sea-Rail (RSR) mode of transportation, nearly doubling its coal movement from 28 million tonnes (MT) in FY22 to 54 MT in FY24. This achievement underscores the government’s commitment to enhancing multi-modal transport solutions for improved logistical efficiency and reduced environmental impact.
The RSR mode integrates rail and sea transport to facilitate the seamless evacuation of coal from mines to ports and then to end users. By leveraging coastal shipping, this system alleviates congestion on the all-rail route (ARR) and contributes to a lower carbon footprint, making it a game-changer for India’s logistics and energy sectors. Over the past few years, the Ministry of Coal, in collaboration with Indian Railways, has undertaken key initiatives to expand the use of RSR networks, ensuring smoother coal transportation to meet the growing energy demands.
A crucial development in this initiative is Indian Railways’ recent decision, notified in February 2025, to extend telescopic benefits in freight rates for coal transported to power plants from mines operated by Coal India Limited (CIL) and its subsidiaries. This decision is expected to further boost coal movement through the RSR mode by reducing transportation costs. Traditionally, coal transported via RSR involves two distinct rail journeys—one from the mines to the unloading port and another from the subsequent loading port to the power plants. Previously, each leg was charged independently, making transportation costs higher. The telescopic benefit will now allow a consolidated freight rate, making RSR transportation more cost-effective and attractive.
This policy shift is poised to accelerate the adoption of RSR mode, further promoting coastal shipping as a viable logistics solution. With the rising coal demand across power plants, these strategic measures will enhance coal movement efficiency while reducing dependency on traditional rail routes.
The Ministry of Coal remains steadfast in its mission to optimize coal evacuation strategies, ensuring a resilient and efficient energy supply system.
