Coal Secretary Vikram Dev Dutt noted that the RSR transportation, which integrates rail and coastal shipping, is not only an economical alternative but also environment-friendly due to its lower carbon footprint
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KAMAL NARANG
The Coal Ministry has set a target of despatching 65 million tonnes (mt) of coal via the rail-sea-rail (RSR) route, which it aims to develop into a major evacuation platform that would likely handle 120 mt by 2030.
The Ministry held stakeholder consultations on Tuesday on the RSR route, to promote multimodal transportation for a more efficient, resilient and sustainable coal supply chain.
Eco-friendly option
Coal Secretary Vikram Dev Dutt noted that the RSR transportation, which integrates rail and coastal shipping, is not only an economical alternative but also significantly environment-friendly due to its lower carbon footprint.
Dutt emphasised on adopting smarter, greener and resilient multimodal transport systems to meet the growing demand for coal in distant consumption centres, particularly Southern and Western India.
The Ministry has set a target of transporting 65 mt coal via coastal shipping in the current financial year. In FY25, FY24 and FY23, it had transported 59 mt, 54 mt and 42.2 mt, respectively, of the dry fuel.
The bulk of coastal shipping of coal happens from Coal India (CIL) subsidiary, Mahanadi Coalfields’ (MCL) Talcher mines, through Odisha’s Paradip and Dhamra ports to thermal power plants (TPPs) in Karnataka, Andhra Pradesh and Tamil Nadu.
Rationale
A senior official explained that the Ministry has transformed in the last 10 years into a consumer-centric organisation that aims to meet the demand.
“Coal is the mainstay of India’s economic growth and in line with the thought, the Ministry is constantly working on not only increasing production but also despatch and supply,” he added.
He explained that coastal shipping becomes “very critical” for the transportation of coal going ahead, particularly by 2030, when India’s production is expected to touch 1,500 mt.
“Almost one-third of this coal, or roughly 500 mt, will come from Odisha, which will further increase pressure on the already stretched supply networks of rail and road. Here, R-S-R route via say Paradip port can become a game changer,” the official explained.
Growing cost, other minerals
Asked about the higher cost involved in RSR compared to the rail route, another senior government official said, “Agreed that RSR is costlier for now. However, as more coal mines become operational in the east (Odisha and Jharkhand) in the future, coastal shipping costs will start coming down with economies of scale. The opportunity is huge.”
A State government official said that not just coal, but other important minerals such as iron ore and bauxite will also need to be evacuated. Considering India’s growing demand for steel, the requirement for these minerals will also be huge.
The government is already expanding the coastal highway network. For instance, National Water Way–5 in Brahmani and Mahanadi rivers have been identified for development.
The Inland Waterways Authority of India, Odisha government and Coal India (CIL) are forming a Special Purpose Vehicle (SPV) which will develop a waterway for transportation of coal from Talcher Coal Fields to Paradip Port.
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Published on April 23, 2025