According to the sources, the Union coal ministry has directed the Indian Railways to operate 600-650 freight trains daily from May to August to transport coal to power plants, anticipating an increase in electricity demand during the summer months.
A senior official from the railway ministry stated that the coal ministry has requested the Indian Railways to ensure a sufficient number of freight trains for coal transportation. The railway ministry is reportedly set to augment its fleet by adding 4,000-4,500 wagons, or 80-100 freight trains, by April.
In anticipation of further demand, the railways has devised a plan to allocate an additional 3,000 wagons, or 60 freight trains, for coal transportation during the summer season.
Currently, 500 trains have been designated for coal transportation, catering to about 48 percent of India’s installed power generation capacity, which is expected to rise to 256.5 GW in 2024 from 240 GW in 2023.
The coal ministry projects coal demand for the power sector at 874 million tonnes in FY25, with production estimated at 1,111.6 million tonnes. Secretary Amrit Lal Meena mentioned improvements in coal production and supply, with ongoing collaboration between the coal ministry and the railways.
Addressing legacy logistic challenges, Union Minister Pralhad Joshi highlighted ongoing investments of Rs 50,000 crore in rail projects and first-mile connectivity. The railways, under Railway Minister Ashwini Vaishnaw, has increased coal transportation capacity by 20 percent but aims for further streamlining in the coming years.
Efforts are underway to enhance coal transportation efficiency, including the adoption of corridor-based approaches, introduction of wagon tipplers, and commissioning of new rail lines. The railways moved 728 million tonnes of coal in FY23, with plans to increase capacity by 70-85 million tonnes in FY24 and FY25.
With 40 railway decongestion projects identified, India seeks to meet rising power demand driven by domestic and industrial consumption, targeting 1,750 billion units of electricity generation in FY24, with thermal power contributing over 75 percent.
