Coal news and updates

House panel recommends dedicated coal corridors, real-time tracking for speedy coal evacuationPSU Watch

New Delhi: Taking note of the ‘logistical inefficiencies’ in coal transportation infrastructure, a parliamentary panel has recommended the development of dedicated coal corridors and the deployment of a real-time tracking system for coal transportation. In the ‘First Report on Demand for Grants (2024-25),’ the Standing Committee on Coal, Mines, and Steel also took note of the “significant strides” made by the Ministry of Coal in modernising coal transportation infrastructure to meet the growing demands for coal, especially from the power sector. “The Committee appreciate the Ministry’s efforts and recommend the development of dedicated coal corridors, particularly rail-based systems, to minimise road dependency and reduce transportation time,” the standing committee noted.

“However, certain challenges persist, such as road damage, coal spillage, and logistical inefficiencies, which require targeted interventions to further enhance the system’s efficiency and sustainability,” the panel added.

“The Committee appreciate the Ministry’s efforts and recommend the development of dedicated coal corridors, particularly rail-based systems, to minimise road dependency and reduce transportation time… To strengthen logistics management, the Committee recommend deploying a real-time tracking system for coal transportation. This system will help optimise routes, enhance transparency, and ensure effective monitoring of coal movement across the supply chain,” said the standing committee in its report.

For areas reliant on road transport, the committee suggested reinforcing concrete roads with durable surfacing to mitigate wear and tear caused by heavy coal-carrying vehicles. Additionally, the panel said that mechanised loading systems should be adopted to enhance operational efficiency and reduce manual intervention.

Referring to the issue of coal spillage during transportation, the panel recommend the implementation of stricter environmental controls, including mandatory use of covered trucks and dust suppression technologies. “Enhancing the safety standards for coal trucks and transportation routes is also suggested to ensure safer and more compliant operations,” said the report.

Speedy evacuation of coal assumes more significance during summer months when power demand touches record highs and the requirement of coal at thermal power plants goes up. In order to meet this increased demand for coal, the government is aiming to increase domestic coal production to more than 1 Billion Tonne (BT) for the first time this year. To evacuate this coal, the government is also creating First Mile Connectivity (FMC) projects and is promoting mechanised loading of coal.

“The Committee are happy to note that the Ministry is steadfast in its efforts to promote coal production and ensure surplus supply, while transitioning towards cleaner energy alternatives like solar, wind, and hydroelectric power, recognising the need to address environmental concerns and reduce carbon emissions,” said the panel.

“The Committee also applaud the Ministry’s commitment to promote coal gasification projects, which hold immense potential for transforming coal into various valuable products. At the same time, the Committee underline managing the impact of climate change while ensuring that developmental priorities continue to get the focus which has been the hallmark of India’s growth strategy,” said the panel in its report. It also asked if funds are allocated categorically to factor in Clean Coal Technologies and other Energy Efficiency measures by the Ministry of Coal.

Referring to the entry of private players into the coal mining sector through the government’s commercial coal mine auctions, the panel urged coal PSUs to be agile and dynamic in order to face the competition from the private sector and maintain their leading position in the future. “Public Sector coal companies, though currently in pole position, in view of the opening of the coal production to private sector participation about four years ago in 2020 itself, the Committee expect coal PSUs to brace for impending Competition from the private coal producers and be agile and dynamic to maintain the leading position in future in a scenario of level playing field,” said the panel.

(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Google News. Click here to follow. Also, join PSU Watch Channel in your Telegram. You may also follow us on Twitter here and stay updated.)