 "railways, coal, CIL, freight, goods, economy, transport")
The Indian Railways is planning to map coal, mineral mines, and ports across the country which have zero or inadequate connectivity and make them part of its flagship mission — Hungry for Cargo. The Railways will build new lines and boost the existing network from these areas to the main rail grid.
“We are mapping and surveying 48 coal and mineral mines and 29 ports for this project. We have identified approximately 100 million tonne (mt) of minerals,” said a senior Ministry of Railways official.
While the project is currently at survey stage, the ministry is eyeing an additional revenue of Rs 10,000 crore by connecting these mines and ports, spread across 52 districts, to the rail network.
The ministry has surveyed these locations primarily for three minerals — coal, iron ore, and bauxite — said another rail ministry official, adding that the project is taking place under the Railways’ Hungry for Cargo mission.
Hungry for Cargo is an internal project of the ministry under which the Railways is aiming to increase freight revenue. This is being done by bringing in new commodities, identifying new cargo opportunities in existing and newer sectors and regions, said an official. In the near term, the Railways is aiming to load over 2,000 mt of cargo by 2023-24, under the project ‘2,024 by 2024’. In 2021-22, it recorded 1,278 mt of freight until February and is poised to cross 1,400 mt in freight loading by the end of the fiscal year.
Sector analysts believe that the lack of last-mile connectivity to key areas, among other factors, has played a part in the reducing share of Railways in total freight.
In 2020, the share of Railways in total freight across the country was 27 per cent. Under the National Rail Plan, the Centre intends to increase this share to 45 per cent by 2050. The ministry is also looking to diversify its freight basket, which is largely dominated by raw materials.
Coal is estimated to account for 47 per cent of the Railways’ total freight revenue, while iron ore’s contribution to the freight basket has been pegged at 9 per cent. The move comes at a time when the Ministry of Coal has also estimated increased demand of rail lines and enhanced freight network as it offers more mines to the private sector and state-owned Coal India aims for a 1-billion tonne coal production goalpost.
The Ministry of Coal, in its five-year vision plan, has already identified 12 new railway line projects for coal evacuation. According to the document accessed by this newspaper, the projects have a March 2024 deadline.
After awarding coal mines to the private sector for captive self-use, the coal ministry in the last two years has also stepped up awarding mines for commercial purposes (mine and sale in theopen market).
All these new mines will need connectivity. Coal ministry officials said the new lines will help bring down congestion in the coal-supply network. While the ministry is unaware of the survey project taken up by the railways, it is hopeful it will be a major addition to the coal evacuation efforts of the Centre, said a senior coal ministry official.
The new plan
- The Railways ministry mapping 48 mines, 29 ports across 52 districts
- Project being executed under 'Hungry for Cargo' mission
- Nationwide mapping for mines and ports without rail connectivity
- Mapping for minerals; focus on coal, iron ore, bauxite
- Mapping shows additional Rs 10,000 crore freight revenue opportunity
