Parliament Question: National Coal Logistics Plan and Policy

GOVERNMENT OF INDIA MINISTRY OF COAL LOK SABHA STARRED QUESTION NO. 522 ANSWERED ON 01.04.2026 NATIONAL COAL LOGISTICS PLAN AND POLICY *522. SHRI CHANDRA PRAKASH CHOUDHARY:

DR. SANJAY JAISWAL:

Will the Minister of Coal be pleased to state:

(a) the key objectives of the National Coal Logistics Plan and Policy including provisions relating to rail-based evacuation, first-mile connectivity projects and coastal or inland waterway transport;

(b) the number of first-mile connectivity projects approved and operationalised in the country till date especially in Jharkhand;

(c) the estimated coal handling capacity created through these projects in the country especially in Jharkhand;

(d) whether the Government has assessed the manner in which the policy is expected to reduce logistics costs, road transportation of coal and associated environmental impacts; and

(e) if so, the details of measures taken by the Government to reduce logistics cost and road transportation of coal under the said policy? ANSWER MINISTER OF COAL AND MINES (SHRI G. KISHAN REDDY)

(a) to (e): A statement is laid on the Table of the House. ***** 1STATEMENT REFERRED TO IN REPLY TO PARTS (A) TO (E) IN RESPECT OF LOK SABHA STARRED QUESTION NO. 522 FOR REPLY ON 01.04.2026 ASKED BY SHRI CHANDRA PRAKASH CHOUDHARY AND DR. SANJAY JAISWAL, REGARDING “NATIONAL COAL LOGISTICS PLAN AND POLICY”.

a): The main objectives of the Coal Logistics Policy and Plan are as follows: i. Availability: To ensure availability of adequate coal loading and evacuation infrastructure at a nearby location through Conveyors, Rail, Road, Port, or Waterways connectivity.

ii. Optimization: To optimize the total logistics cost, loading, and transportation, through rationalization of the transport network with existing and any other proposed mode of transportation. iii. Integration: To promote an interconnected multi-modal network of transport infrastructure & greener transportation initiatives for efficient movement of coal covering the entire country.

iv. Modernization: To promote greater adoption of information communication technology, upgraded infrastructure, use of artificial intelligence, drones, sensors, and innovation to improve efficiency and address the evolving needs of the sector.

v. Efficiency: To strive for a faster and more efficient loading and transportation system in

order to reduce the turnaround time, leading to an increase in the time and cost efficiency of the system. vi. Inclusivity: To address needs of all stakeholders from the logistics supply and user side.

Measures taken to ensure seamless integration of coal transportation to the end-use plant under

this plan are: i. Coal production planning of 1.5 BT by FY 2030, ii. State-wise Origination-Destination mapping for coal evacuation, iii. 90% Mechanized coal loading and evacuation infrastructure implementation through ‘First Mile Connectivity’ (FMC) by FY2030, iv. 33 critical railway lines have been identified and taken up with the Ministry of Railways for future coal evacuation, v. Multi-modal transport involving conveyor, MGR, railways, inland waterways, and coastal, including Rail-Sea-Rail (R-S-R) route, vi. The additional wagon requirement has been taken up with the Ministry of Railways.

(b) & (c): The Ministry of Coal, through the Coal PSUs, has taken up construction of 139 first-mile connectivity projects with a capacity of 1,319 million tonnes including 31 projects having capacity of 290 million tonne in Jharkhand. As of now, 65 projects with a capacity of 552 million tonnes are commissioned including 6 projects having capacity of 47.5 million tonnes in Jharkhand.

(d) & (e): The Coal Logistics Plan proposes a strategic shift away from road transportation through First Mile Connectivity Projects, aiming for a reduction in rail logistics cost up to 14% and an estimated annual cost saving of about Rs. 21,000 crore by FY 2030. With implementation of the Coal Logistics Plan and Policy, the following impact is anticipated by FY 2030:

i. Reduction in the share of road transportation and increase in share of rail-based coal transportation in the country, ii. Reduction in logistics cost with network optimization, iii. Reduction in CO2 emissions.

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