As the Centre sees coastal shipping as the silver bullet to avert logistics-induced power crises in the future, the ministries of coal and railways have finalised the framework for reduction of rail freight rates for transportation of coal in rail-sea-rail (RSR) mode, Business Standard has learnt.
The ministry of railways will offer lower rates for the supply of coal from mines to ports and then ports to power plants. This comes after several states complained that the rates of transporting thermal coal through RSR are higher than transportation solely through railways. This is despite shipping being cheaper than rail.
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