Re-Shaping Coal Logistics: Coal Ministry To Invest Rs 26,000 Crore On Rail Projects To Drive First-Mile Connectivity

India's Ministry of Coal is actively working on the National Coal Logistics Plan to strengthen the country's energy security and support the vision of a self-reliant nation.

In line with this, the Ministry has announced plans to invest Rs 26,000 crore in a series of expansive railway projects aimed at establishing comprehensive multi-modal connectivity.

These projects emphasise on the integration of first mile connectivity through strategically positioned railway sidings near coal mines.

This step aims to optimise coal transportation and streamline the loading process.

Concept Of First Mile Connectivity (FMC)

The concept of FMC is playing a crucial role in promoting sustainable growth and ecological preservation.

By revolutionising coal transportation, FMC is also bringing about long-lasting and positive changes for the environment, reports Financial Express.

FMC eliminates the need for road-based coal transportation within mining areas. Instead, conveyors or roads leading to the nearest railway siding are used to transport coal.

This reduces the number of trucks on the roads, resulting in less air pollution, traffic congestion, and road damage.

In addition to improving logistical efficiency, the adoption of FMC has a positive impact on resource preservation and environmental sustainability.

It not only ensures the long-term economic viability of coal mining operations but also enhances productivity and reduces operational costs through technology-driven processes.

This shift towards sustainable transportation is a significant step in mitigating climate change and improving air quality.

Ongoing Projects

According to the Coal Ministry, there are currently 67 ongoing first-mile connectivity projects across Coal India Limited, Singareni Collieries Company Limited, and Neyveli Lignite Corporation India Limited.

These projects will enhance the capacity by 885 million ton. The projects are being executed in three phases with the goal of achieving a mechanised handling capacity of approximately 1 billion ton of coal.

The Ministry of Coal is actively collaborating with the Ministry of Railways to enhance coal evacuation and distribution capabilities.

Currently, there are 13 railway lines under-construction in partnership with the Ministry of Railways to expand coal distribution capabilities.

These railway projects have been undertaken by the Ministry to develop multi-modal connectivity in line with the Prime Minister Gati Shakti initiative.