New Delhi, Feb 28
Indian Railways Introduces Freight Discount to Boost RSR Coal Movement The Ministry of Coal has been working to improve coal transportation by expanding the Rail-Sea-Rail (RSR) system. This method combines rail and sea transport to move coal more efficiently from mines to ports and then to power plants.
Using RSR reduces congestion on direct railway routes and lowers the carbon footprint of coal transport. Coastal shipping also offers a cost-effective and eco-friendly alternative for coal movement.
Thanks to these efforts, coal transported through RSR has almost doubled from 28 million tonnes (MT) in FY22 to 54 MT in FY24, and the trend is expected to continue growing.
To encourage more coal movement via RSR, Indian Railways has introduced a freight discount in February 2025. This telescopic benefit applies to coal transported from Coal India Limited (CIL) and its subsidiaries to power plants.
Currently, coal is transported in two rail stages: First leg: From mines to an unloading port and Second leg: After sea transport, from a loading port to power plants.
Earlier, rail freight was charged separately for both legs. The new telescopic benefit combines the charges, reducing overall transportation costs.
This initiative is expected to increase coal movement via RSR even further and promote coastal shipping as a viable alternative.
The Ministry of Coal is committed to expanding RSR coal transportation to meet India’s growing energy demands. This strategy will help ensure a stable, cost-effective, and sustainable coal supply for power generation.
(Source: PIB)
