Railways stakes claim for coal transport planning, fix 'big mismatch'

Coal freight is railways' biggest source of revenue, earning it Rs 67,000 crore in 2021-22

The railways ministry plans to have an "overarching" say over transporting coal by planning and setting up supply routes based on upcoming mines and demand.

The proposal aims to fix an annual supply crisis during summers and is being worked on under PM Gati-Shakti national Master plan. “As the transporter, we are the best-equipped to identify and plan the fastest and the most efficient supply routes for coal transportation. With the fruition of the plan, the aim is to no longer have a power crisis every year,” said a senior ministry official in the know of the matter.

When power plants ran out of coal in April-May, the Railways canceled passenger trains to make way for freight trains carrying the fuel. The power ministry, state-owned Coal India Limited and its subsidiaries, and the coal ministry currently plan supplies based on the fuel supply agreements (FSA) between power plants and coal companies.

“There is a big mismatch in terms of planning of loading stations and destination power plants. Since railways are not seen as a stakeholder in the process, the planning is done by other ministries, without due consultation with us. The ministry of power sends a sub-group monthly plan which coal companies approve,” said another official.

The Railways will establish end-to-end connectivity between mines and power plants for better logistics and timely transportation of coal to sidings. Railway sidings are typically 25-30 km away from mines, and coal is ferried there using road transport.

Officials said, if need be, the Railways will set up alternate transport modes for last-mile connectivity such as conveyor belts and also align its transport with multi-modal connections such as inland waterways.

“The overarching infrastructure plan for end-to-end connectivity has been prepared and internally sanctioned. We have also asked zonal and divisional railways to prepare detailed project reports (DPRs) for the laying of tracks and other works,” said a third senior government official.
 

Senior officials said the divisional railway manager (DRM) of a railway zone would be empowered to plan and modify routes for coal freight transport. The Railways has asked coal companies to provide current and future mining plans for laying tracks: this is being done to accommodate new mines and avoid building infrastructure near mines about to be shut down. The plan is already in advanced stages for major coal-producing areas such as Khorda, Talcher, and Bilaspur, said officials.

The ministries of coal, power, and railways have for long argued over coal logistics, with the national transporter being blamed for not providing enough supply of rakes for coal transport to the power units.

When a coal shortage hit the country in August last year, coal, power and railways set up an inter-ministerial committee that planned weekly coal dispatch and transport. However, the transport was largely dependent on the terms of the FSA than the route availability and congestion, said a senior official. The proposed plan has been shared with the ministry of coal and power and will accommodate their comments.

Coal freight is the biggest source of revenue for railways, accounting for almost half of that basket and earning it Rs 67,000 crore in 2021-22. In June, average coal freight lead--the distance travelled by rakes--increased to 565 km from 465 km a year ago.