The draft coal logistic policy 2022.

The Ministry of Coal, released the draft Coal Logistic Policy 2022 for comments, and all stakeholders are requested to provide their comments.

Objectives of the Policy include:
- To ensure availability of adequate coal evacuation infrastructure
- Optimising logistics cost
- Promoting multi-modal network of transport and greener transportation
- Modernising the logistics infrastructure through the use of technology

Reduction in coal logistics costs:
- One of the critical issues with coal evacuation is the high cost of logistics.
- The draft Policy seeks to reduce coal logistics costs in several ways, including
  - Planning for construction and use of shared evacuation infrastructure in the mine allocation process
  - Regulating railway freight rates for coal
  - Making rail-sea-rail routes more competitive vis-à-vis all rail routes.
  - Use smart coal logistics corridors that give real-time information about the logistics chain.
Multimodal network of transport
- The draft Policy noted that one of the challenges in coal evacuation is limited logistics planning in multimodal transport.
- The Policy proposes to formulate a Multi-modal Integrated National Coal Evacuation Plan.
- A Technical Support Unit and an Inter-Ministerial Committee (IMC) will be set up for formulating the Plan.
- While formulating the Plan, issues will be taken up with relevant ministries, state governments, and other stakeholders.
- The Inter-Ministerial Committee (IMC) will monitor the plan’s implementation.

Coal is India’s most essential and abundant fossil fuel. It accounts for 55% of the country’s energy needs. The country’s industrial heritage was built upon indigenous coal.

Anthracite:
- Highest grade of coal has the highest calorific value.
- It has a carbon content of 80% to 95%.
Bituminous coal (black coal):
- It is used in manufacturing coke and power generation.
- It has a carbon content of 60% to 80%.
Lignite (brown coal):
- The lowest grade of coal is used for electricity generation.
- It has a carbon content of 40% to 55%.
Peat:
- It is partially decayed plant material.

Coal reserves:
- India is one of the top 5 countries in terms of coal reserves.
Coal production:
- India is the 2nd largest coal-producing nation in the world.

Domestic energy needs:
- Coal is the most abundant fossil fuel, accounting for 55% of the country’s energy needs.
Source of revenue:
- State-owned Coal India, the world’s largest coal mining company, is a significant source of revenue for state coffers through dividend payments and taxes.
The cheapest energy source:
- Coal is far cheaper than nuclear power, natural gas, and oil.
More accessible to mine and transport:
- Unlike crude oil and radioactive materials, coal is mined and transported easily.

Import dependence on high-grade coal:
- Majority of India’s coal production is non-coking coal; coking coal has to be imported.
Parallel economy:
- Parallel economy run by the coal mafia contributed to the black coal market, the diversion of good quality coal, the expropriation of government lands, etc.
  - Coking coal has a higher carbon content and a lower ash content than non-coking coal.
The source of pollution:
- Coal is one of the sources of atmospheric pollution that severely affects the atmosphere through particulate coal pollution.
Displacement of tribal:
- The forests and agricultural lands belonging to the tribal people have been laid waste because of haphazard mining.
Lack of transparency:
- Allocation of coal blocks faces arbitrariness and lack of transparency.
- For example, the coal scam of 2014.

SHAKTI:
- SHAKTI (Scheme for Harnessing and Allocating Koyala Transparently in India): For the auction and allotment of coal linkages and will lead to affordable power, access to coal, and accountability in the allocation of coal.
PM Khanij Kshetra Kalyan Yojana:
- To provide for the welfare of areas and people affected by mining-related operations.
Coal Mines (Special Provisions) Act, 2015:
- The Coal Mines (Special Provisions) Act, 2015, enabled the allocation of coal mines through a transparent auction.
Online Coal Clearances System:
- It is to provide single window access to its investors to submit online applications for all the permissions/clearances and approvals granted by the Ministry of Coal.
UTTAM App:
- The UTTAM (Unlocking Transparency by Third Party Assessment of Mined Coal) app: is for all citizens and coal consumers to monitor the process of Third-Party Sampling of coal across Coal India Limited(CIL) subsidiaries.

Investment in infrastructure:
- Commercial mining projects can be aided with investment in initial infrastructure settings, which are more capital-intensive than mining.
Promote research:
- Steps must be taken to promote research and exploration activities and modern underground mass production technologies.
Increase Imports:
- The imports should be increased in periods of shortage, preferably before monsoons and summer months and gradually decreased during winter.
Pollution must be kept within the limit:
- As India’s coal is high in ash content, coal beneficiation should be done to reduce the ash content and improve its grade.
Invest in renewables:
- Divert investment in renewable energy, such as solar, would reduce pollution.

Content Source: The Hindu