9-March-2024-Editorial

UNION MINISTER PRALHAD JOSHI LAUNCHES “COAL LOGISTICS PLAN AND POLICY”

The Coal Logistics Plan and Policy represent a landmark initiative by India to revamp its coal sector, addressing long-standing challenges in transportation and logistics.

This comprehensive policy aims to modernize coal transportation, making it more efficient, cost-effective, and environmentally sustainable.

        

What is the Coal Logistics Plan and Policy?

Background:

• Coal logistics has historically been problematic in India, especially during high-demand periods.
• Previous challenges prompted railways to implement special measures to avoid disruptions.

About:

• Aims to modernize coal logistics, including storage, loading, unloading, and delivery processes.
• Focuses on a shift towards a railway-based system, targeting a 14% reduction in rail logistic costs and an annual cost-saving of Rs 21,000 Crore.

Expected Outcomes:

• Minimization of air pollution, traffic congestion, and reduction in carbon emissions by approximately 100,000 tonnes annually.
• Anticipates a 10% decrease in the average turnaround time of wagons nationwide.

Status of the Coal Sector in India

Coal:

• Naturally occurring combustible rock, crucial for India’s energy needs.
• Forms through the accumulation and decomposition of plant material over millions of years.

Coal Reserves:

• Concentrated in eastern and central India, with major production in states like Odisha, Chhattisgarh, and Jharkhand.

Types of Coal and Clusters:

• Anthracite, Bituminous coal, Lignite, and Peat, found in various regions with distinct carbon contents.

Significance of Coal for India:

• Accounts for 55% of the country’s energy needs and sustains the majority of thermal power plants.
• Critical for industrial development and energy security.

Challenges Related to Coal for India

Environmental Impact:

• Coal mining and combustion contribute to pollution, deforestation, and habitat destruction.

Health Risks:

• Exposure to coal-related emissions poses health hazards to nearby communities.

Land Acquisition and Rehabilitation:

• Displacement of communities and the challenge of proper rehabilitation remain significant issues.

Technological Constraints:

• Limited adoption of clean coal technologies due to cost and technical challenges.

Transition to Renewable Energy:

• Balancing energy security with climate change mitigation objectives is a significant challenge.

Why India Advocates for Phasing Down Coal Instead of Phasing Out?

Energy Security:

• Abrupt coal phase-out could disrupt energy supply, impacting industries and households.

Economic Considerations:

• Coal-related industries support millions of jobs and contribute significantly to the economy.

Infrastructure Investment:

• Premature phase-out could lead to stranded assets and wasted investments.

Way Forward

Improving Energy Efficiency:

• Enhancing energy efficiency across the coal value chain and adopting high-efficiency, low-emission technologies.

Diversification of Energy Sources:

• Prioritizing investments in renewable energy to reduce reliance on coal.

Transition to Clean Coal Technologies:

• Investing in research and deployment of clean coal technologies.

Promoting Sustainable Mining Practices:

• Implementing environmentally sustainable practices and strengthening regulatory mechanisms.

By prioritizing these strategies, India can navigate the challenges of its coal sector while advancing towards a more sustainable energy future.