Coal Ministry pledges $2.6 billion for railway projects

18 Aug 2023 CW Team

The coal ministry of India has unveiled an ambitious plan to invest $2.6 billion in extensive railway projects to foster comprehensive multimodal connectivity. This initiative aligns with the national coal logistic plan's strategic framework, emphasising the integration of first-mile connectivity (FMC) via railway sidings strategically located near coal mines. The primary objective is to optimise coal transportation and make the loading process more efficient.

Currently, 67 FMC projects are underway across Coal India Limited (CIL), Singareni Collieries Company Limited (SCCL), and Neyveli Lignite Corporation India Limited (NLCIL). These projects aim to enhance the capacity by 885 million tons, with the ultimate goal of achieving a mechanised handling capacity of nearly 1 billion tonne of coal.

The coal ministry's endeavors are in sync with the PM Gatishakti's objectives, focusing on developing multimodal connectivity. The FMC approach not only boosts logistical efficiency but also promotes resource conservation and environmental sustainability. The coal ministry is also partnering with the ministry of railways to improve coal evacuation and distribution capabilities, with 13 railway lines currently under construction.

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