In a strategic move towards optimising coal transportation and reducing reliance on road networks, the Coal Ministry, under the leadership of Coal Minister Pralhad Joshi, has introduced an integrated coal logistics plan. This visionary plan, launched recently, focuses on bolstering railway and port infrastructure while minimising road transportation, aligning with the Government’s commitment to meeting the surging demand for coal in a sustainable manner.
As India anticipates substantial growth in power demand over the next decade, fuelled by increasing industrialisation, the need for an efficient and eco-friendly coal logistics system becomes paramount. The ministry’s plan aims to usher in a significant shift towards railway-based transportation, particularly in first mile connectivity (FMC) projects. This transition is expected to result in a substantial 14 percent reduction in rail logistic costs, translating to an annual cost saving of ₹21,000 crore. The logistics policy also embraces smart coal logistics, integrating technologies such as Freight Operations Information Systems (FOIS), tracking, Artificial Intelligence (AI), and analysis. This approach aims to provide visibility across logistics chains, monitor asset utilisation, and offer advanced analytics for better decision-making.
The Coal Logistics Plan and Policy, as articulated by the ministry, seeks to optimise evacuation processes. Fifteen railway projects have been initiated, with five already commissioned. Moreover, coal companies have undertaken 103 FMC projects, with 31 completed, reflecting a substantial commitment to transforming the coal transportation landscape. This transformative approach is not only expected to bring about environmental benefits, including minimised air pollution and reduced carbon emissions but also aims for a 10 percent saving in the average turnaround time of wagons nationwide. Aligned with PM Gati Shakti, 37 critical railway projects have been identified to meet the future coal evacuation demand, ensuring a seamless and sustainable future for coal transportation in India.
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