Union Minister Pralhad Joshi Unveils Coal Logistics Plan and Policy

Union Minister for Coal, Mines, and Parliamentary Affairs, Pralhad Joshi, announced the launch of the National Coal Logistics Plan and Policy, 2023 on February 29. The policy aims to enhance railway utilization in coal transportation to over 87 percent by FY 2029-30, anticipating a surge in coal consumption from 980 million tons to 1.5 billion tons by 2030. Key objectives include cost savings, reduced environmental impact, and enhanced efficiency in coal logistics.

Transformative Railway-Based Approach

• Shift from road-based to railway-based first mile connectivity (FMC) projects.
• Target: 14 percent reduction in rail logistic costs, resulting in annual savings of Rs 21,000 crore.
• Expected reduction in carbon emissions by approximately 100,000 tonnes per annum.
• Anticipated 10 percent decrease in average wagon turnaround time nationwide.

Multi-Modal Connectivity Initiatives

• Integration of Rail-Sea-Rail (RSR) transportation witnessing 50 percent growth over five years.
• Expansion plans aiming for 120 MT by FY 2030.
• Execution of eight railway projects funded by coal companies in Odisha-Chhattisgarh-Jharkhand.
• Completion of 31 FMC projects out of 103, with a capacity of 291 MT, costing Rs 24,000 crore.

Infrastructure Development and Future Plans

• Emphasis on energy corridor projects including new railway line construction and capacity augmentation.
• Importance of maintaining momentum for coal’s role in India’s energy security and economic growth.
• Identification of 37 critical railway projects aligned with PM Gati Shakti for future coal evacuation demand.

Innovative Policy Framework

• Development of a sector-specific logistics policy through collaborative efforts with stakeholders.
• Incorporation of suggestions from stakeholders to refine the policy for maximum effectiveness.
• The Coal Ministry becoming the first Government of India ministry to introduce such a comprehensive logistics policy.