As northern India grappled with record-breaking temperatures soaring to 50 degrees Celsius this summer, the nation faced an unprecedented surge in power demand. To address this, the Indian Railways transported a staggering 72.01 million tonnes of coal to thermal power plants in May, marking a 9.3 percent increase from the same month in 2022. According to railway data, coal remains the most transported commodity, with iron ore trailing behind at 14.61 million tonnes. This substantial boost in coal transport highlights the critical role of railways in sustaining India's energy needs during peak summer conditions.
The freight loading in May was 8.4 percent more at 139.16 mt compared to 128.3 mt in April as a result freight revenue was up 8.2 percent sequentially at Rs 15,230.9 crore in May
EDFC Boosts Efficiency in Coal Transportation to Northern India
The operationalisation of the 1,337-kilometer Eastern Dedicated Freight Corridor (EDFC) has significantly improved the efficiency of coal transportation from eastern coal mines to thermal power plants in northern India. Stretching from Son Nagar in Bihar to Ludhiana in Punjab, this crucial rail route traverses key coal-producing regions and directly supplies coal to over 25 thermal power plants. The EDFC is expected to reduce the average travel time for coal shipments by approximately 24 hours, enhancing the reliability of power supply in the northern part of the country.
Freight Corridors Drive Record Coal Transport and Revenue Growth
In May, freight loading surged to 139.16 million tonnes, an 8.4% increase from April's 128.3 million tonnes. This growth translated to an 8.2% rise in freight revenue, reaching Rs 15,230.9 crore. The Western Dedicated Freight Corridor (DFC), spanning 1,506 km from Dadri in Haryana to Mumbai, has halved the transit time for export and import (EXIM) traffic per rake. The Railways aims to increase its share in freight loading to 45% by 2050, supported by a Rs 1.24 lakh crore investment in the two DFCs, which are expected to be fully operational by the end of 2024.
Nanduri Srinivas Comments
“The days of blackouts due to coal shortages because of the inefficiency of Indian Railways are over. Some of the power plants in the north have cut down on coal reserve stocking, which has helped in releasing the required operational capital as coal is reaching faster due to the eastern DFC,” Nanduri Srinivas, former Director of Operations & Business Development at Dedicated Freight Corridor Corporation of India Limited (DFCCIL), told Business Today.
Rail Coal freight volume rises 9.3% on summer demand pull
As temperatures soared to unprecedented levels in northern India during May, the demand for coal surged. To meet this demand, Indian Railways transported 9.3% more coal compared to the same period last year. The increased coal transportation contributed to an overall growth in freight volumes across the railway network. Government data reveals that freight volumes for all commodities rose by 3.9% in May compared to the previous year.
The total freight loaded in May 2024 reached 139.16 million tonnes (mt), marking a significant 8.46% increase from April's 128.3 mt, according to a senior government official.
In May, Indian Railways generated a freight revenue of Rs 15,230.9 crore, marking an 8.2% sequential increase. Compared to May 2023, when it earned Rs 14,641 crore, there was a 4% rise in freight revenues for the national transporter.
The ministry has struggled to enhance its commodity volumes compared to the previous year. With a target of reaching 3,000 metric tons of freight by 2030, it must rapidly double its freight volume.
Simultaneously, increased passenger traffic occurred due to the conclusion of the Lok Sabha elections and the summer rush, prompting the Railways to operate an additional 10,000 trains.
Coal supplies to most thermal power plants have been steadily replenishing, credited to improved logistics planning before summer and the full operation of the eastern dedicated freight corridor. This corridor connects Punjab to Bihar, addressing major congestion points in the Indian rail network.
The financial year's data indicates that the combined freight loading during the initial two months (April and May) of 2024-25 amounted to 267.5 million tonnes, reflecting a 2.7 percent increase compared to the preceding year.
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