Coal Logistics targets Rs 210 billion savings to focus on rail by 2030

02 Dec 2024 CW Team

The government’s Coal Logistics Policy and Plan aims to save Rs 210 billion annually by transitioning to rail-based transportation, which is expected to cut rail logistics costs by 14% and reduce dependence on road transport. Union Coal and Mines Minister G. Kishan Reddy outlined these objectives in a written reply to the Rajya Sabha, highlighting additional benefits like optimised logistics costs and lower CO2 emissions by FY2030. The plan involves implementing 90% mechanised coal loading and evacuation infrastructure through First Mile Connectivity (FMC) projects. This includes state-wise origin-destination mapping, adoption of multi-modal transport systems such as railways, conveyor belts, inland waterways, and coastal routes, and enhanced collaboration with the Ministry of Railways to address critical railway lines and wagon requirements. The coal production target under the plan is set at 1.5 billion tonnes by FY2030. The strategy emphasises integrating technology like artificial intelligence, drones, and advanced infrastructure to streamline coal transportation to end-use plants. Reddy noted that there is no separate budget allocation for the plan, as it is being executed in collaboration with coal companies, the Ministry of Railways, and other logistics stakeholders. The initiative is expected to boost efficiency, reduce costs, and support the government’s broader objectives for sustainable coal logistics. (ET)

Infrastructure Urban

12 May 2026

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