Coal Ministry pledges $2.6 billion for railway projects

India's coal ministry has unveiled an ambitious plan to invest $2.6 billion in comprehensive rail projects to promote expanded multimodal connectivity. This initiative is in line with the strategic framework of the National Coal Logistics Plan, which focuses on the integration of first-mile connectivity (FMC) through rail yards strategically located near coal mines. The primary goal is to optimize coal transport and make the loading process more efficient.

Currently, there are 67 FMC projects underway in Coal India Limited (CIL), Singareni Collieries Company Limited (SCCL) and Neyveli Lignite Corporation India Limited (NLCIL). These projects aim to increase capacity by 885 million tonnes, with the ultimate aim of achieving a mechanised transhipment capacity of almost 1 billion tonnes of coal.

The coal ministry's efforts are in sync with Prime Minister Gatishakti's goals aimed at developing multimodal connectivity. The FMC approach not only increases logistical efficiency, but also promotes resource conservation and environmental sustainability. The coal ministry is also working with the ministry of railways to improve evacuation and distribution capabilities for coal, with 13 railway lines currently under construction.