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Indian Railways' Journey with Coal 1855-2023

Changing Policies and Outcomes

by Ashim Kumar Maitra (Author)
©2025 Monographs XXVI, 260 Pages

Summary

With substantial new approach and global relevance, this book provides a chronological narrative of how policy priority, policy design and institutional structure for coal, railways and power sector in India co-evolved in phases with changing national priorities. I believe that this book is an extremely timely contribution and will surely help inject new insights and clear perspective for researchers and policy makers in India and inform the global discourse as well on shaping the smooth transitions for sustainable future for coal rich countries like India.
The book will be of considerable interest and use to the authors of global assessment reports and development community including academia, decision makers like national governments, bilateral and multilateral funding agencies, and civil societies engaged in developmental actions in the region. It will encourage more extensive studies in many other countries to advance deeper regional debate, struggle and understanding of the way forward.  
– Joyashree Roy, Former Professor of Economics, Jadavpur University, Kolkata, India and Director, SMARTS Center, Asian Institute of Technology, Thailand.

In this path-breaking volume, A.K. Maitra has provided a much-needed historical account of the development of the railways and coal industry. The book is based on archival materials and the author's decades of experience handling coal transportation and related policies. The book serves as a bridge between academic history and critical policy studies. It will have a long shelf life.
– Ritajyoti Bandyopadhyay, PhD, FRHistS, FRAI. Author of Streets in Motion: The Making of Infrastructure, Property, and Political Culture in Twentieth-century Calcutta, Cambridge: Cambridge University Press, 2022

Table Of Contents

  • Cover
  • Title Page
  • Copyright Page
  • Dedication
  • Foreword
  • Table of Contents
  • List of Maps
  • List of Tables
  • Preface
  • Acknowledgements
  • List of Abbreviations
  • Introduction
  • Chapter 1: The Journey from 1855 to 1902
  • Development of Coal Mining in India before Introduction of Railways
  • Coal Exploration in India
  • Issues in Coal Mining
  • Demand for Coal and Transportation Constraints in early nineteenth century
  • The Need for Railways
  • Setting up the Edifice: Policies for the Development of Railways in India
  • Administrative Policies for the Development of Railways
  • Terms of Guarantee
  • Engineering, Management and Legal Issues
  • Challenges Faced in Construction of Railway Lines
  • Formation of Companies to Run the Railways
  • Legislations to Regulate Railway Operations
  • Impact of Operation of Multiple Railway Companies
  • Administrative Supervision of Railway companies
  • Standards of Construction of Railway Lines
  • Issues in the Management and Development of the Railways
  • Increase in Coal Production and Expansion of the Rail Network in Eastern India
  • Methods of Coal Mining
  • Expansion of East Indian Railway (EIR) Network
  • Expansion of Railway Network to other Coal bearing areas
  • Other Minor Coalfields
  • Development of Other Major Railway Lines and Impact on Overall Movement
  • Coal Production
  • Evolution of Tariff Policy
  • Phases in Evolution of Tariff Policy
  • 1855–1875
  • Growth of Coal Traffic
  • Impact of High Tariff in India
  • Lower Tariffs
  • 1876–1902
  • Poor Coordination between Railway Companies and its Impact on Costs and Railway Movement Patterns
  • Rising Demand for Coal and Tariff Policy
  • Incentive for Railway Companies to Own Coal Mines
  • Cost of Coal and Operational Costs
  • Growth in Coal Production, Transportation and Reduction in Tariff
  • Impetus for change in tariff structure
  • Attempts at Inter Railway Coordination
  • Reduction in Tariff
  • Further Attempts at Tariff Reduction and Inter railway Cooperation
  • Continuing Demands for Tariff Reduction
  • Reduction in Rates and Movement of Coal via Calcutta Port
  • Opening of the Jharia Coalfield
  • Coal Movement Patterns
  • Production and Consumption of Coal
  • Trade and Fiscal Policy
  • Status of Technology on Railways 1890–1901
  • Freight Wagons
  • Braking Systems
  • Locomotives
  • Safety
  • Expansion of railway Network
  • Chapter 2: 1902–1947: Growth amidst challenges
  • Administrative Changes
  • Major Changes in Tariff Structure
  • Growth in Coal Production and New Railway Lines
  • Uneconomic Mines
  • Rising Coal Production
  • New Mining Areas
  • Reduction in use of Imported Coal by Railways
  • Cost Control: Ownership of Coal Mines by Railway Companies and Impact on Coal Market
  • Efficiency of Train Operations
  • Speed of Trains, Signalling, Wagon Design, Locomotives
  • Need for Larger Wagons
  • Locomotives
  • Signalling
  • Investment in the Railways and Industry: Impact on Railways
  • Trends in Production and Policies for Movement of Coal up to 1918
  • Equity in Supply of Wagons for Coal
  • Impact of the First World War
  • Distribution of Coal during War: Administrative Measures
  • Development of Industries in India after 1918
  • Use of Coal by Railways and Other Industries
  • Major Changes in Policy: 1919–1925
  • 1925: A Year of Landmark Developments
  • Coal Industry: Structure, Production, Prices and Transportation (1919 to 1945)
  • Structure
  • Mechanisation of Coal Mines
  • Prices and Production of Coal
  • Impact of the Great Depression on Coal Industry
  • Transportation and Distribution of Coal (1919–1945)
  • After the War
  • Chapter 3: 1948–1980: A New Beginning: Planned Development
  • Creating Conditions for Industrial Development: 1948–1980
  • Railways
  • Railway Zones
  • Nature of Indian Railways
  • Status of Indian Railways in 1951
  • Demands on the Railway System
  • Future Programme for Railways
  • Coal
  • Assessment of Coal Resources
  • Consumption of coal
  • Administrative and Legislative Actions for Increasing Coal Production
  • Coal Production and New Legislations
  • Distribution of Coal: Coordination with Railways
  • Demand for Coal
  • Development Plan for Railways
  • Expansion of Railway Capacity
  • Spatial Distribution of Coal Production and Other Issues
  • Freight Equalisation Scheme for Railways
  • Rolling Stock
  • Decade of the 1960s
  • Planning for Coal and Railways
  • Investment Planning for Railways
  • Strengthening Railway Infrastructure: New Assets
  • Upgrading Track
  • Wagon Design
  • Systems of Coal Loading: Issues in Loading New Wagons
  • Coordination with Railways for Distribution of Coal
  • Allotment of Railway Wagons for Coal Movement
  • Performance during the Third Five Year Plan
  • Railway Finance: Higher Dividend Payment
  • Power Sector
  • Major Changes in Government Policy
  • Nationalisation of Coking and Non-Coking Coal
  • Coking Coal
  • Non-coking Coal
  • Grading of Coal
  • Planning for Movement of Coal for Industries
  • Imposition of Emergency and thereafter
  • Efficiency of Railways
  • New Wagons: Problems of Transition
  • The Problem of Wagon Couplings
  • Chapter 4: 1981–2002: The Era of Liberalisation
  • Performance during the Sixth Plan
  • Targets for the Seventh Plan
  • Funds for Investment
  • Performance During Seventh Plan
  • Management of Change: Changes in Systems of Coal Loading and Rail Transportation
  • Impact of Block Rake Operations: Closure of Small Goods Sheds
  • Introduction of New and Heavier Wagons by Railways
  • Coal Loading Using Payloaders
  • BOBR Wagons
  • Railways: Systemic Issues Impinging on Optimum Utilisation of Assets
  • Slow Growth of Track Network
  • Growth of Traffic and Line Capacity Issues
  • Slow Freight Train Speeds: Hauling Capacity of Locomotives, New Wagons and Configuration of Traffic
  • Recommendations of SLC: Stable Movement Matrix and Maintenance of Wagons
  • Rapid Growth in Coal Demand from Power Sector: Impact on Coal Industry and Railways
  • Location of Power Plants
  • Finance: Internal Generation of Resources by Railways
  • Economic Liberalisation and Changes in Policies: 1991–2002
  • Target and Plan for Coal Sector
  • Financial Support to Coal India Ltd.
  • Coal Production
  • Performance of the Railways
  • Reduction in Financial Support to Railways
  • Investment Choices: Gauge Conversion
  • Investment Choices: New railway Zones
  • Continuous Increase in Freight Tariff to Garner Resources
  • Liberalisation: Partial Deregulation of Price of Coal
  • Ninth Five Year Plan at the Turn of the Century
  • Strategy for Financing Railway Investment and Loading Target for Railways
  • Funding of Railway Infrastructure by Coal Industry
  • Coal Production Targets
  • Coal Beneficiation
  • Setting up of Non-coking Coal Washeries
  • Coking Coal Washeries
  • Coal Demand and Output
  • Performance of Railways
  • Progress of Railway Projects for Coal Movement mentioned in Ninth Plan
  • Other Issues Mentioned in Ninth Plan
  • Expert Committee
  • More Liberalisation of Coal Marketing Policies
  • Comments on Policies of Railway in Plan Documents
  • Chapter 5: Paradigm Shifts (2003–2023)
  • New Approach
  • Dedicated Freight Corridor
  • New Policy for Coal
  • Developments during the Eleventh Plan (2007–12)
  • Coal Production and Demand for Coal
  • Grading of Coal on basis of Gross Calorific Value
  • Shortage of Coal
  • Expert Committees
  • Beneficiation of Coal and Pit Head Power Plants
  • Captive Coal Mines
  • New Initiatives
  • Funding Capital Investment
  • New Environmental Norms for Power Stations
  • Expansion of Railway Network
  • Commercial Mining of Coal
  • First Mile Connectivity Project
  • Power from Renewable Sources
  • Chapter 6: Looking Ahead
  • Future Planning for Indian Railways
  • Appendices 1 to 7
  • Appendix 1
  • Appendix 2
  • Appendix 3
  • Appendix 4
  • Appendix 5
  • Appendix 6
  • Appendix 7
  • Bibliography
  • Index

List of Maps

1. Year 1903: Major Coalfields of India and adjoining railway lines for coal movement.

2. Year 1939: Map of railways in India showing the years in which construction of the lines connecting the coalfields were completed.

3. Map of the Golden Quadrilateral and Two diagonals.

4. Year 1990: Map showing major coalfields and adjoining railway routes.

5. Map of Dedicated Freight Corridor.

6. Year 2015: Map of coalfields and coal routes showing the railway routes under intense pressure.

7. Schematic maps of new projects for augmenting coal evacuation.

List of Tables

Chapter 1: 1855 to 1902

1. Table 1.1: Trends in Coal Production 1815–46

2. Table 1.2: Import of Materials for Railway Construction 1854–59

3. Table 1.3: Coal Production 1878–1900

4. Table 1.4: Production and Import/Export of Coal 1878–1900

5. Table 1.5: Goods Tariff on three Major railway Companies 1854–1856

6. Table 1.6: Goods Rates in Annas and Paise per Ton Per Mile in 1870

7. Table 1.7: Movement of Coal and other minerals and Total traffic in 1870

8. Table 1.8: Cost of Carriage of Freight in Selected Companies 1871–72

9. Table 1.9: The export of grains from India between 1881–82 and 1890–91

10. Table 1.10: Cost of Locomotive Power per Train Mile 1877–78

11. Table 1.11: Proposed tariff structure for freight in 1891

12. Table 1.12: The growth in coal traffic on EIR 1889–1905

13. Table 1.13: Production of Coal in Tons 1885–1906

14. Table 1.14: Production and Use of Coal 1885–1901

15. Table 1.15: Actual load of freight trains against an ideal load of 500 tons per freight train for period 1897 to 1901

Chapter 2: 1902–1947

16. Table 2.1: Rates for Transportation per Ton of Coal from Jharia Coalfields

17. Table 2.2: Trend in coal production, exports and imports (1878–1920)

18. Table 2.3: Consumption of coal and wood by Railways in India 1902–06

19. Table 2.4: Collieries owned by Railway Companies

20. Table 2.5: Statistics Showing Efficiency of Train Operation

21. Table 2.6: Utilisation of wagon Capacity

22. Table 2.7: Number of Wagons per Train

23. Table 2.8: Capital Expenditure on Railways in India

24. Table 2.9: Coal Movement by Rail in India

25. Table 2.10: Tariff for Coal Transportation Charged by Different Railway Companies

26. Table 2.11: Railway and Sea Freights to Different Destinations

27. Table 2.12: Estimate of Coal Requirement in 1946 by Coal Commissioner

28. Table 2.13: Production of Coal in India 1939–1947

Chapter 3: 1948–1980

29. Table 3.1: Production and Export of Coal 1951

30. Table 3.2: The Production and Despatch of Coal 1950–55

31. Table 3.3: Future Plan for Coal Production 1954–61

32. Table 3.4: Expected Addition to Rolling Stock

33. Table 3.5: Coal Production in India – State wise Data 1971–76

34. Table 3.6: Production of Coal and Transportation by Railways 1976–80

Chapter 4: 1981–2002

35. Table 4.1: Growth of Coal Production, Installed Power Capacity and Railway Freight Movement 1980–85

36. Table 4.2: Coal Production and Railway Freight Targets for Seventh Plan

37. Table 4.3: Investment in Indian Railways 1981–84

38. Table 4.4: Coal Production in India – State wise Data 1976–91

39. Table 4.5: Growth of Track Network 1971–91

40. Table 4.6: Growth in Coal based Power Generation

41. Table 4.7: Number of New Coal based Power Units Installed in each Region 1971–90

42. Table 4.8: Pattern of Financing of Capital Expenditure of Railways

43. Table 4.9: Expansion of Broad Gauge Network 1991–2001

44. Table 4.10: Loading and Earning from all Commodities and Coal 1976–2001

45. Table 4.11: Coal Production Plan for 2002

Chapter 5: 2003–2023

46. Table 5.1: Thermal Power Generation Capacity (in Mega Watts) at the end of Five Year Plan Periods 2002 to 2012

47. Table 5.2: Coal imports by India 2006–12

48. Table 5.3: Coal based Power Capacity added between 2010 and 2015

49. Table 5.4: Coal Requirement of Thermal Power Stations in Million tonnes

50. Table 5.5: Coal Imports 2013–17

51. Table 5.6: Coal Availability and Coal Transported by Indian Railways

Preface

This book traces the progress of railways and coal industry in India from the middle of the nineteenth century to present times. The long journey was shaped by changing political scenarios, economic conditions and the perspectives of the ruling governments. It also witnessed changing management styles, priorities and applications of technology. A study of the impact of all these diverse factors on shaping the development of the two industries is especially interesting as their contemporaneous development was important for India’s industrial progress and they continue to play pivotal roles in sustaining the economy to the present day.

India today consumes nearly a billion tonnes of coal, and the Indian Railways moves more than two thirds of it. Energy consumption in India is increasing at a rapid pace and driven by the expanding population and quest for better living standards, this trend is likely to continue. However, the unbridled use of coal, a polluting fossil fuel, cannot continue at the present rate. As the world progresses to the use of renewable energy to ensure a cleaner environment, India has committed to generating 500 giga watts of electrical energy from renewable sources by 2030. Though providing adequate energy from renewable sources to replace coal would be a great challenge, the transition should occur as soon as possible. This is the appropriate time to narrate the story of the wonderful concurrent journey of the railways and coal in India.

Systematic records of coal mining in India are available from the 1820s, and for the last two centuries, the importance of coal in the energy firmament of the nation has steadily increased. The railway was introduced in India in 1853 and the first line of the East Indian Railway reached the Raniganj coalfields in Bengal in 1855. The narrative of the book begins from the period when the first railway line in India reached the coalfields.

The progress of railway transportation depended on the availability of coal as it was the basic fuel for the locomotives. Road and riverine transportation facilities were poor. Thus, railway transportation became the preferred mode for distribution of coal. The two industries became mutually dependent and developed contemporaneously. The industrial development of the nation was facilitated by the expansion of the railway network and increase in coal production and the performance of the two industries continue to be crucial to the economic growth of India.

During the period under study, political control over the country changed and along with it, the attitude of the government towards these two industries. Administrative structures, management methods and technology experienced radical changes over time. Progress was achieved by adapting to changing conditions and creating management structures to accept the change. Navigation of these huge changes was not easy, but was achieved with good leadership and commendable cooperation between the two industries.

The railways and coal are very large industries and any narrative about them covering a period between 1855 to 2023 has to necessarily make some choices about the areas of focus. I have chosen to make the study temporal, by periods rather than by subjects, the choice being determined by stages when certain changes in policies and economic thinking occurred. The second level of choice is the gradual development of coal production and railway transportation in the country, the philosophy of the government about the industries, the policies governing them, the management methods and the status of technology. All the parameters underwent changes over time and produced varied outcomes. The period under British rule is covered in the first two chapters and the other four are devoted to the major changes that took place after India attained independence in 1947. The segregation serves to highlight what role the railways and coal industry could have performed for the nation during the period of British rule.

My experience with coal started in 1980 when I joined the Eastern Railway as a young officer and was promptly posted to Asansol, in the heart of the Raniganj coalfield, then one of the leading coal handling railway divisions of the country. Thereafter, my professional life would be dominated by handling various aspects of coal logistics for the next four decades. Long years of working in coalfield areas in close association with officers of the coal industry provided the opportunity of observing both industries at close quarters and experience first-hand their cooperation, the impact of changing policies at the grass root levels and the immense contribution of coal and railways to the task of nation building. Experience of working at zonal railway headquarters and at the Ministry of Railways (Railway Board), provided a macro perspective about both industries. The criticality of dynamic and progressive policies to facilitate the complex exercise of production and distribution of a critical fuel to the numerous users in the country became evident, as also the need for continuous coordination between the producers, transporters and consumers. Experience of working with Coal India and WBPDCL deepened my understanding of producers’ and users’ perspectives.

Details

Pages
XXVI, 260
Publication Year
2025
ISBN (PDF)
9781803745688
ISBN (ePUB)
9781803745695
ISBN (Softcover)
9781803745671
DOI
10.3726/b22023
Language
English
Publication date
2025 (August)
Keywords
Guaranteed railways railway tariff policy Coal production World Wars separate railway budget Great Depression five year plans new government policies coal nationalisation new wagons saturation of railway routes economic liberalisation thermal power industry demand for coal Dedicated Freight Corridor coal imports private mining of coal future demand for coal policy options
Published
Chennai, Berlin, Bruxelles, Lausanne, New York, Oxford, 2025. xxvi, 260 pp., 2 fig. col., 5 fig. b/w, 51 tables.
Product Safety
Peter Lang Group AG

Biographical notes

Ashim Kumar Maitra (Author)

Ashim Kumar Maitra is a distinguished expert on transportation and logistics with over four decades of professional experience. He currently serves as Visiting Faculty at IISBWM (Calcutta University), teaching Transport and Logistics Management. He is the author of several journal and op-ed articles.

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Title: Indian Railways' Journey with Coal 1855-2023