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Coal logistics plan targets ₹21,000 crore savings, focus on rail-based transport: Govt

The plan also seeks to reduce road transportation dependency, optimize logistics costs, and lower CO2 emissions by FY2030.

New Delhi: The Coal Logistics Policy and Plan aims to achieve annual savings of ₹21,000 crore through a strategic shift towards rail-based transportation, reducing rail logistics costs by 14%, Union minister of coal and mines G. Kishan Reddy informed the Rajya Sabha in a written reply. The plan also seeks to reduce road transportation dependency, optimize logistics costs, and lower CO2 emissions by FY2030.

“The ministry of coal has identified critical railway projects and undertaken measures to integrate coal transportation to end-use plants. Implementation of the plan is being done in coordination with other ministries and stakeholders,” Reddy said.
Under the plan, 90% mechanized coal loading and evacuation infrastructure will be implemented through First Mile Connectivity (FMC) projects by FY2030. Measures include state-wise origin-destination mapping for coal evacuation and adoption of multi-modal transport systems, including railways, conveyor belts, inland waterways, and coastal routes.

Critical railway lines have been identified for future coal evacuation in collaboration with the Ministry of Railways, and additional wagon requirements are being addressed to meet increasing coal production targets.

Production and logistics targets

The coal production target under the plan is set at 1.5 billion tonnes by FY2030. The shift to a rail-based logistics system is expected to enhance efficiency and reduce costs in coal transportation across the country.

The policy also emphasizes the use of technology such as artificial intelligence, drones, and upgraded infrastructure to streamline operations and meet sectoral needs.

“There is no separate budget allocation for the implementation of the Coal Logistics Plan, as it is executed in collaboration with coal companies, the Ministry of Railways, and other logistics stakeholders,” Reddy said.

The plan aligns with the government’s goals of optimizing coal transportation, meeting growing energy demands, and reducing environmental impact, he added.