An announcement has been made by the coal ministry about its plans to infuse ₹26,000 crore into a series of expansive railway projects for establishing comprehensive multimodal connectivity.
These efforts highlight the integration of FirstMile connectivity through strategic rail sidings close to coal mines, in line with the National Coal Logistics Plan Strategic Framework. The aim of the strategic action is to optimize coal transport and streamline its loading process.
According to the coal ministry, a total of 67 first-mile connectivity (FMC) Projects are in progress across Coal India Limited (CIL), Singareni Collieries Company Limited (SCCL), and Neyveli Lignite Corporation India Limited (NLCIL), totaling a capacity enhancement of 885 million tons. These projects, designed to achieve a mechanical handling capacity of about 1 billion tons of coal, will be carried out in three phases.
The ministry states, “In line with the goal of PM Gatishakti, the ministry of coal has undertaken railway projects costing Rs. 26,000 crore to develop multimodal connectivity.”
The FMC also plays an important role in safeguarding the resources and sustainability of the environment, as well as strengthening logistics efficiency. As a result of this approach, coal mining operations will be economically viable for a longer period of time.
In doing so, the introduction of technology improves productivity and reduces operational costs at the same time contributes to coal industry profitability as a whole. In addition, to deal with climate change as well as improve air quality this transition into sustainable transport has an important role to play.
In order to improve the capacities of coal evacuation and distribution, the Coal Ministry works in close collaboration with the railways ministry. Currently, thirteen rail lines are under construction in partnership with the Ministry of Railways to expand coal distribution capabilities and have ongoing projects at various phases of development.
The adoption of FMC also promises long term benefits, except for the immediate ones. It will not only help boost coal mining’s economic viability but also improve its productivity and minimise operating costs after embracing technology based protocols. In order to combat climate change and improve air quality standards, this comprehensive approach is not simply an improvement of coal sector profitability but also a strong strategy..
