Indian Railways cuts freight rates, boosting coal movement through RSR mode, reducing costs, and enhancing energy efficiency.
In a significant boost to coal transportation efficiency, the rail-sea-rail (RSR) movement of coal has almost doubled from 28 million tonnes (MT) in FY22 to 54 MT in FY24. This growth is a result of the Ministry of Coal’s proactive initiatives to promote seamless multimodal logistics, ensuring a more cost-effective, sustainable, and efficient coal supply chain.
RSR Mode: A Game Changer for Coal Logistics
The RSR mode of transportation integrates rail, sea, and rail routes to optimise coal movement from mines to end users, reducing congestion on all-rail routes (ARR) and offering a lower carbon footprint. The use of coastal shipping as an intermediary step has the potential to revolutionise India’s logistics industry by improving coal evacuation efficiency while reducing overall transportation costs.
Under this system, coal is transported in two rail legs:
First leg: From coal mines to an unloading port via rail.
Second leg: From a loading port to power plants via rail.
This multi-modal approach has been a key focus area for the Ministry of Coal, which, in collaboration with Indian Railways, has significantly expanded RSR-based coal movement in recent years.
Indian Railways Introduces Telescopic Freight Rate Benefit
To further incentivise the adoption of RSR mode, Indian Railways has announced a telescopic freight rate benefit in February 2025. This policy will apply to coal transported from mines of Coal India Limited (CIL) and its subsidiaries to power plants.
Previously, both rail legs were charged separately, making the overall transportation cost higher. With the telescopic benefit, the freight charges are now calculated as a single journey, significantly reducing transportation expenses and making RSR mode more competitive compared to the all-rail route.
Impact and Future of RSR Mode
This decision is expected to increase the volume of coal transported via RSR mode, further strengthening India’s coastal shipping network and improving the overall supply chain for the power sector. The Ministry of Coal remains committed to:
Scaling up RSR coal evacuation to meet growing energy demands.
Enhancing cost efficiency through strategic freight rate policies.
Promoting sustainable logistics solutions with reduced carbon emissions.
With this continued push, India’s coal transportation landscape is set for significant transformation, ensuring a more resilient, cost-effective, and eco-friendly energy supply chain.
Source: PIB Delhi
