The Union Ministry of Coal unveiled the “Coal Logistics Plan and Policy” on 29 February, 2024. The launch of the Coal Logistics Plan signifies a milestone in India’s endeavour to modernize coal transportation, enhance efficiency, and promote sustainability, said the Union Coal, Mines and Parliamentary Affairs minister, Pralhad Joshi.
As per the policy, there is a need for efficient logistics to meet the escalating coal demand, projected to surge to 1.5 billion tonnes (bnt) by 2030 from the current 980 million tonnes (mnt). The plan proposes a strategic shift towards a railway-based system in first mile connectivity (FMC) projects, with the aim of reducing rail logistic costs by 14%.
By making the railway network bigger through first mile connectivity will help reduce air pollution, ease traffic jams, and cut down on carbon emissions by about 0.1 mnt/annum. Additionally, a 10% reduction in the average turnaround time of wagons nationwide is anticipated.
The government aims to transition from the traditional road-based coal evacuation system to railway-based systems in FMC projects. The ministry is in the process of developing an artificial intelligence-powered dedicated logistics platform for the fossil fuel, which will integrate all existing central and state-level coal transport tracking systems.
The Smart Logistics Plan will encompass tracking, managing, and forecasting coal demand and supply from production to consumption. Other stakeholders involved in the planning process include the Ministry of Railways, Ministry of Ports, Shipping and Waterways, Coal India, NTPC, NITI Aayog, and private coal miners.
Through collaborative efforts from government bodies, industry leaders, and stakeholders, India is poised to unlock the full potential of its coal industry, ensuring a resilient and sustainable energy future, the ministry said.