House panel recommends dedicated coal corridors, real-time tracking to meet power demand
- If implemented, the measures could also facilitate better coal delivery to remote coastal regions, where several power plants are heavily reliant on imported coal.
To bolster coal transportation and address the growing energy needs, the Standing Committee on Coal, Mines, and Steel has recommended the creation of dedicated coal corridors and the adoption of real-time tracking systems for coal logistics.
In its latest report on demands for grants for FY25, the panel highlighted how these measures could optimize routes, improve transparency, and enhance the monitoring of coal movement across the supply chain.
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The recommendations come as India’s coal production hits record highs, following the supply crisis of September-October FY22. Domestic output is expected to surpass 1 billion tonnes for the first time in FY25. If implemented, the measures could also facilitate better coal delivery to remote coastal regions, where several power plants are heavily reliant on imported coal.
"The committee notes the significant strides made by the ministry in modernizing coal transportation infrastructure to meet the growing demands of the sector. 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 report said.
The panel recommended prioritizing rail-based coal corridors to reduce road dependency and cut transportation times. For regions reliant on road transport, it suggested reinforcing concrete roads with durable surfacing to mitigate wear and tear caused by heavy coal-laden vehicles.
Mechanized loading systems, a cornerstone of the government’s coal logistics plan, also came under focus. Known as first-mile connectivity (FMC), these systems aim to streamline coal evacuation and minimize manual intervention.
The government’s push for a railway-based logistics model under FMC projects is expected to reduce rail costs by up to 14%, saving an estimated ₹21,000 crore annually. By FY30, the government aims to achieve 90% mechanized coal loading and evacuation.
Environmental and safety concerns
Coal spillage during transportation has been flagged as a critical issue. The committee recommended stricter environmental controls, such as mandatory use of covered trucks and dust suppression technologies, to mitigate pollution. Enhancing safety standards for coal trucks and transportation routes was also suggested to ensure safer and more compliant operations.
The panel further proposed deploying a real-time tracking system for coal logistics. “This system will help optimize routes, enhance transparency, and ensure effective monitoring of coal movement across the supply chain,” it stated.
While lauding the ministry’s efforts to increase coal production and ensure surplus supply, the panel emphasized the importance of addressing environmental concerns and advancing cleaner energy alternatives, including solar, wind, and hydroelectric power.
Recognizing the need to reduce carbon emissions, the committee stressed the importance of tracking companies’ climate change mitigation efforts. It sought details from the ministry regarding funding allocations for clean coal technologies and energy efficiency measures.
“The committee also applauds the ministry’s commitment to promote coal gasification projects, which hold immense potential for transforming coal into various valuable products,” the report added, underscoring the importance of balancing developmental priorities with managing climate impacts, a hallmark of India’s growth strategy.
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Business NewsIndustryHouse panel recommends dedicated coal corridors, real-time tracking to meet power demand
First Published:9 Dec 2024, 02:44 PM IST
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