To improve the coal supply chain and reduce transportation costs, the Ministry of Coal has launched several key initiatives. In February 2024, it introduced the Coal Logistic Plan and Policy, aimed at making coal movement faster, more efficient, and environmentally friendly.
A major part of this plan is the First Mile Connectivity (FMC) projects. These projects use modern, mechanised systems—such as conveyor belts and crushers- to move coal directly from mines. So far, 39 FMC projects have been completed, adding a combined handling capacity of 386 million tonnes per year.
To further speed up coal delivery, the government is upgrading rail infrastructure. It has also introduced a Rail-Sea-Rail transport model, which is especially helpful for power plants and industries located near the coast. This method has nearly doubled coal movement—from 28 million tonnes in 2021-22 to 54 million tonnes in 2023-24.
Union Minister of Coal and Mines, G. Kishan Reddy, shared these developments in a written reply in the Lok Sabha. These steps are expected to meet India’s growing energy needs more efficiently while promoting sustainable coal logistics across the country.
