The Ministry of Coal released the draft Coal Logistic Policy 2022 for comments.29 Coal logistics refers to the transport of coal from the origin to the destination through a single or multimodal mode of transportation. It includes storage, loading, or unloading for delivery of coal to various sectors such as power plants, and cement industry.
Objectives of the Policy include: (i) ensuring availability of adequate coal evacuation infrastructure, (ii) optimising logistics cost, (iii) promoting multi-modal network of transport and greener transportation, and (iv) modernising the logistics infrastructure through use of technology.
Key features of the draft Policy include:
▪ Reduction in coal logistics costs: One of the key issues with coal evacuation is the high cost of logistics. The draft Policy seeks to reduce coal logistics costs through several ways including: (i) planning for construction and use of shared evacuation infrastructure in the mine allocation process, (ii) regulating railway freight rates for coal, (iii) making rail-sea-rail route more competitive vis-à-vis all rail route, and (iv) using smart coal logistics corridors that give real time information about the logistics chain.
▪ Multimodal network of transport: The draft Policy noted that one of the challenges in coal evacuation is limited logistics planning in multimodal transport. The Policy proposes to formulate a Multi-modal Integrated National Coal Evacuation Plan. A Technical Support Unit and an Inter-Ministerial Committee (IMC) will be set up for formulating the Plan. While formulating the Plan, issues will be taken up with relevant ministries, state governments, and other stakeholders. The implementation of the Plan will be monitored by the IMC.
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