The government shifts to rail-based coal transport to cut costs, CO2 emissions, and optimise logistics under its First Mile Connectivity plan.
Union Minister of Coal and Mines G. Kishan Reddy announced in the Rajya Sabha that the Coal Logistics Policy aims to save ₹21,000 crore annually by transitioning to rail-based transportation. The shift is expected to reduce rail logistics costs by 14%, lower carbon emissions, and optimise coal transportation by FY2030.
Key initiatives include First Mile Connectivity (FMC) projects, which will deliver 90% of the planned mechanised coal loading and evacuation infrastructure by FY2030. The policy also emphasises state-specific origin-destination mapping and multi-modal transportation networks involving railways, conveyor belts, inland waterways, and coastal routes.
The Ministry of Coal, in coordination with the Ministry of Railways, has identified critical railway routes for future coal evacuation. Provisions for additional waggons are underway to meet the nation’s coal production target of 1.5 billion tonnes by FY2030.
This policy is set to enhance the efficiency of coal transportation, reduce costs, and support sustainable logistics practices nationwide.
