Govt likely to lower rail freight rates for coastal shipping of coal

Proposal aimed to ease pressure on rail network, improve coal dispatch during peak demand summer months

The Centre may lower railway freight rates for thermal coal transported via coastal shipping, by changing the formula for price calculation under the rail-sea-rail (RSR) mode, Business Standard has learnt. With the peak coal demand months around the corner, the Centre is aiming to increase coal dispatch while reducing pressure on the railway network, and keep the cost of sea-borne coal under control.

This also comes after Finance Minister Nirmala Sitharaman indicated in her 2023-24 Union budget speech that coastal shipping would be promoted. Following this, the ministries of railways and shipping are soon scheduled to have a high-level stakeholder