Congress and other opposition parties are spewing a fresh controversy over the issue of coal transportation within the country. From Aam Aadmi Party to BRS Party, opposition party leaders are accusing the central government of extravagance and demanding justification for shipping coal from eastern India to western states via the coastal route.
The claim
Earlier this week, Congress MP Manish Tiwari slammed the Ministry of Power for instructing Punjab government for importing coal using Rail-Ship-Rail mode instead of direct ARR mode. The opposition argued that it costs 3x more and levelled allegations that industrialist Gautam Adani is getting benefited from the RSR mode.
The Ministry of Power's decision to ship coal from the eastern part of India to the thermal power plants in the northern and western parts of the country using RSR mode causes delay and is deemed expensive. Other opposition parties, including Aam Aadmi Party and local parties such as BRS, echoed the views of the grand old party.
In a recent tweet, Y Sathish Reddy, chairman of Telangana State Renewable Energy Development Corporation, said that "Modi govt instructed Punjab to bring Coal from Eastern India to Punjab only by Sea to Dahej/Mundra Ports on West Coast & then by Rail to Punjab. Why take a longer sea route when rail was best feasible option? Isn't this throwing away all the public money into the pockets of Adani?"
The minister cited a govt order dated November 30, 2022, which instructs transportation of domestic coal in three legs viz a). MCL/ Talcher area to Paradip Port (East Coast) to Dahej / Mundra Port (West Coast) via Ship route and c). Dahej/ Mundra Port to Thermal Power Plants in Northern/ Western India via rail route."
The order further stated that "the transport of domestic coal using this RSR mode, though costlier than ARR mode, is cheaper than importing coal."
The order copy is being widely circulated by opposition parties, terming it illogical.
Fact check
International Business Times reviewed the decision by the Ministry of Power in detail and assessed its advantages and disadvantages. Firstly, the decision to use the coastal route to move coal from eastern India to Punjab was proposed by the Asian Development Bank. But the decision wasn't solely for Punjab, instead, it was for entire western India.
But responding to the allegations leveled by the opposition, here's how using the RSR mode is better. The reasoning will also show how the decision was taken keeping both immediate and long-term benefits in mind.
Firstly, the decision to use coastal shipping routes eases congestion on railway lines and rake shortage during the peak seasons. The movement of coal from Paradip to other ports along the eastern coast is feasible considering the vacant capacity at ports in the region and the proximity to power plants in southern India.
As per ADB's estimations, certain thermal power plants have existing linkages with SECL, which is about 600 km from Paradip port. Shifting the linkage from SECL to MCL will reduce the first mile distance by 200 km from mine to load port. It will also reduce the total cost of coastal shipping, which will be lower than current rail cost from SECL. With this, cost of moving coal from east India to Gujarat Urja Vikas Nigam Ltd's Wanakbori power plant will be lower by Rs 200 per tonne. This addresses the cost issue raked by the opposition ministers.
Recent studies instituted by the Coal ministry now show that coastal shipping may be able to help move up to 130 million metric tonnes per annum (MMTPA) coal by 2030.
The Center has also taken the power and fuel crisis into consideration for choosing the coastal route for moving coal. Many states had reeled under the power shortage last summer, due to which the state-owned Coal India had to import coal for the first time since 2015.
Besides all these reasons, coal movement of coal via coastal route will be more environmentally friendly as compared to road and rail emissions. Hence, the decision is in line with India's climate change commitments.
After reviewing all the facts, IBTimes has arrived at the conclusion that moving coal using RSR mode is feasible, cheaper and effective. Moreover, it is certainly not targeted at any particular state.
