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India's Ambitious Plan: Creating energy corridors for Rail Transport

2023-08-02

India is undertaking an ambitious initiative to establish energy, mineral, and cement transport corridors that will enable the smooth movement of coal, iron ore, bauxite, and cement. The Ministry of Railways intends to seek Cabinet approval for a substantial investment program amounting to Rs 5.25 trillion for the fiscal years 2024-2031. The primary goal is to enhance rail connectivity to mining areas, cement plants, and consumption points, as outlined in the PM Gati Shakti National Master Plan.

The proposed corridors aim to alleviate bottlenecks in the existing railway network. The projects encompass the upgrading of track infrastructure, including the doubling of existing routes and the creation of alternative pathways to circumvent congested regions.

In addition, certain ongoing projects facing cost overruns may be integrated into these corridors, according to sources familiar with the matter.

A senior government official mentioned that the increased allocation will significantly boost the efficiency of freight movement within the national transportation system. This move aligns with Vision 2030, a strategic plan that seeks to raise the modal share of Indian Railways in freight transportation from the current 27 per cent to 45 per cent.

The railway network plays a pivotal role in the entire ecosystem, as it is responsible for transporting 90 per cent of the country's raw materials.

An official emphasised the necessity to augment connectivity to coal, iron ore, bauxite mines, and cement plants across the nation, while also expanding the railways' carrying capacity to meet the growing demand for cement, coal, and minerals.

As of the end of 2019, the railways had transported 1,210 million tons of the total freight basket, which amounted to 4,700 million tons. However, they are targeting a significant increase, planning to load 2,024 million tons of the estimated 6,400 million tons of total freight by 2024.

The Gati Shakti master plan has resulted in a remarkable rise in the construction of new rail lines, reaching 12 kilometres per day in 2023, up from 4 kilometres previously. As per data analysed by the DPIIT, the railways have planned the construction of 13,264 kilometres of rail infrastructure projects, the highest ever recorded.