 transportation mode to facilitate the efficient movement of coal across India. This innovative multi-modal system integrates rail and sea transport to ensure a seamless flow of coal from mines to ports and ultimately to end-users-Views Today){kind=link}
MARCH 1: The Ministry of Coal has been proactively promoting the Rail-Sea-Rail (RSR) transportation mode to facilitate the efficient movement of coal across India. This innovative multi-modal system integrates rail and sea transport to ensure a seamless flow of coal from mines to ports and ultimately to end-users. By combining rail and coastal shipping, the RSR mode significantly enhances logistical efficiency, reducing congestion on the all-rail route (ARR) while providing an environmentally-friendly alternative that lowers the carbon footprint associated with coal transportation.
In recent years, the Ministry of Coal, in collaboration with Indian Railways, has made substantial progress in utilizing the RSR network to evacuate coal. This initiative has led to remarkable growth in coal movement via the RSR mode. Coal transportation, which stood at 28 million tons (MT) in FY22, has nearly doubled to 54 MT in FY24, with the trend continuing to rise. This success reflects the potential of the RSR system in boosting India’s coal transportation capacity and meeting the growing energy demands of the country.
To further improve the efficiency and volume of coal movement through RSR, Indian Railways introduced a significant policy change in February 2025. The new policy permits a telescopic benefit in freight rates for coal transported from the mines of Coal India Limited (CIL) and its subsidiaries to powerhouses. This reduction in freight charges is expected to make RSR transportation more cost-effective by eliminating the previous practice of charging separate rail freight for each leg of the journey—first from the mines to the unloading port, and then from the loading port to power plants. The telescopic benefit will help lower overall transportation costs, thereby encouraging greater use of the RSR mode.
The integrated Rail-Sea-Rail route plays a critical role in meeting the coal demands of various power plants across the country. By alleviating congestion on traditional all-rail routes and reducing transportation costs, RSR offers a sustainable alternative to conventional coal evacuation methods. Additionally, the potential for coastal shipping to revolutionize India’s logistics industry is significant, as it provides an effective, eco-friendly means of moving bulk coal.
The Ministry of Coal is committed to enhancing the Rail-Sea-Rail coal evacuation strategy to ensure that the country can reliably meet its growing energy needs. This initiative not only supports the nation’s power generation sector but also contributes to a more resilient and efficient energy supply system, which is essential for India’s continued economic growth.