The Indian government has introduced a draft policy termed as ‘Coal Logistic Policy 2020’ by adopting a transformative approach for improving efficiency and reducing costs involved in coal movement.
The proposal has been prepared by the Ministry of Coal (MoC) and it has invited stakeholders to share comments by 9 September, 2022.
The aim of the policy is to identify, evaluate and eliminate the gaps in existing coal evacuation infrastructure and promote environment-friendly modes of transportation.
This is particularly important to address the challenges faced by the logistics network including lack of investment, higher costs and congestion in the rail network at a time demand for coal is rising steadily.
As per the Coal Vision report drafted by Coal India Ltd (CIL), domestic coal demand is expected to reach 1,300-1,900 million tonnes (mnt) by 2030.
Strategies
The policy envisages ensuring availability of adequate evacuation infrastructure, optimising Total Logistics Cost (TLC) and promoting an interconnected multi-modal network by greater involvement of information communications technology.
This would be done by implementing several measures such as arrangement of first-mile and last-mile connectivity, focus on modal shift to conveyors, railways and waterways from road transportation and making the Rail-Sea-Rail (RSR) route more competitive.
Besides, planning for construction and use of shared evacuation infrastructure like development of railway siding in cases where there are two-three mines close to each other.
In addition, the process involves formation of smart coal logistics corridors for ensuring complete oversight on every tonne of coal from the mine to the consumption point to ensure online and real-time analysis of market actions.
This facility would provide the Ministry with advanced analytics such as heat-map generation, route planning, TLC minimisation, etc.
Action plan
The MOC has assigned consultants to prepare a detailed coal evacuation plan covering all existing and upcoming non-CIL coal blocks and a large number of CIL blocks.
Post verification, the Ministry would integrate data on coalfield-wise production of coal by 2030 and collect customer details along with supply chain network so that coal is delivered at a minimum transportation cost.
Separately, the MOC in consultation with stakeholders would assess the quantum of coal to be transported mode-wise, gaps in infrastructure and infrastructure requirement for using waterways.
Based on the findings of the study, a multi-modal integrated national coal evacuation plan would be prepared to fulfill the requirement by 2030. These plans would be placed before the Network Planning Group (NPG) for approval.
Furthermore, an Inter-ministerial Committee (IMC) would be formed to take up issues with the concerned organisations and monitor implementation of the plan.
Leave a Reply