Union Minister of Coal and Mines G Kishan Reddy informed the Rajya Sabha that the Coal Logistics Policy and Plan seeks to save ₹21,000 crore annually by shifting to rail-based transportation, resulting in a 14% reduction in rail logistics costs. The plan also aims to reduce reliance on road transportation, optimize logistics costs, and cut CO2 emissions by FY2030.
By FY2030, 90% of the planned mechanized coal loading and evacuation infrastructure will be built through First Mile Connectivity (FMC) projects. Measures include state-specific origin-destination mapping for coal evacuation and the implementation of multi-modal transportation networks such as railways, conveyor belts, inland waterways, and coastal routes.
Critical railway routes for future coal evacuation have been identified in coordination with the Ministry of Railways, and extra wagon requirements are being considered to fulfill rising coal output targets. The plan has a coal production target of 1.5 billion tonnes by FY2030. The transition to a rail-based logistics system is projected to improve efficiency and lower costs for coal transportation throughout the country.
