Ministry of Coal Infrastructure Development Update
The Ministry of Coal is implementing 139 First Mile Connectivity (FMC) projects with a total capacity of 1,319 million tonnes per annum (MTPA) targeted for completion by FY 2029-30. As of the current status, 72 projects with cumulative capacity of approximately 589 MTPA have been commissioned, while the remaining 67 projects are at various stages of implementation, tendering, and planning.
Coal Logistics Plan and Progress
The Coal Logistics Plan and Policy, 2030 targets are being achieved progressively by FY 2029-30. In rail infrastructure expansion for coal evacuation, 5 out of 8 railway projects have been commissioned, with the remaining 3 projects scheduled for commissioning by FY 2028. The Ministry has identified 33 critical railway projects being undertaken by the Ministry of Railways for future coal evacuation requirements.
Identified Bottlenecks in Coal Evacuation
The Ministry has identified several major bottlenecks in coal evacuation from pitheads to end-use destinations, including inadequate rail capacity and congestion on certain high-density routes, delays in sanction, land acquisition, forest and environmental clearances, and execution of railway projects. Operational constraints relate to availability, placement and turnaround of railway rakes, road congestion and environmental concerns associated with truck transportation, and constraints in developing alternate modes such as rail-sea-rail, inland waterways and coastal shipping, including availability of suitable terminals and last-mile connectivity.
Integrated Coal Logistics Initiative
The Ministry of Coal, in collaboration with Ministry of Railways, Ministry of Power and Ministry of Road & Transport & Ports, launched an Integrated Coal Logistics Plan to develop a technology-enabled, cost-effective, resilient logistics ecosystem. The plan includes identification of 33 critical railway projects for coal evacuation, increasing the share of coal transportation through railways to 75% by FY2030 to reduce dependence on higher-cost road movement, and promoting coastal shipping and inland waterways to diversify transportation routes. Coal India Limited is facilitating coal movement through Rail-Sea-Rail mode by reducing Performance Incentive for coal supplies beyond ACQ from 40% to 20% to encourage cost-effective movement.
Expected Outcomes and Current Benefits
These initiatives have already contributed to augmentation of coal evacuation capacity, improvement in loading efficiency, and more reliable movement of coal from mines to consumers. Mechanized loading through silos and rapid loading systems has reduced rake loading time, improved wagon utilization, and minimized transit and handling losses. The development of additional rail, FMC and multimodal infrastructure is expected to further improve rake turnaround, reduce dependence on road transportation, lower logistics costs, and support the projected increase in domestic coal production up to FY 2029-30.