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Coal ministry to invest ₹26,000 cr in railway projects to boost multimodal connectivity

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Coal ministry to invest ₹26,000 cr in railway projects to boost multimodal connectivity

Posted on : 16-08-2023 | Author : Saurav Anand

Photo by Mint

New Delhi: The coal ministry has unveiled plans to invest ₹26,000 crore into a series of extensive railway projects aimed at establishing comprehensive multimodal connectivity.

Aligned with the strategic framework of the national coal logistics plan, these initiatives underscore the integration of first-mile connectivity (FMC) through strategically positioned railway sidings adjacent to coal mines. This strategic move aims to optimize coal transportation and streamline the loading process.

The coal ministry stated that a total of 67 first-mile connectivity (FMC) projects are underway across Coal India Limited (CIL), Singareni Collieries Company Limited (SCCL), and Neyveli Lignite Corporation India Limited (NLCIL), resulting in a capacity enhancement of 885 million tons. These projects are being executed in three phases, all with the goal of achieving a mechanized handling capacity of approximately 1 billion tons of coal.

The ministry states, "In line with the PM Gatishakti goal, the Ministry of Coal has undertaken railway projects costing Rs. 26,000 crore to develop multimodal connectivity."

Beyond bolstering logistical efficiency, FMC has a positive impact on resource preservation and environmental sustainability. By adopting this approach, coal mining operations gain long-term economic viability. The infusion of technology-driven processes enhances productivity while simultaneously reducing operational costs, thereby contributing to the overall profitability of the coal sector. Furthermore, this transition towards sustainable transportation plays a crucial role in addressing climate change concerns and improving air quality.

The Ministry of Coal is actively collaborating with the Ministry of Railways to enhance coal evacuation and distribution capabilities. Currently, 13 railway lines are under construction in partnership with the Ministry of Railways to expand coal distribution capabilities, with projects at various stages of development.

Apart from immediate benefits, the adoption of FMC promises enduring advantages. By embracing technology-driven protocols, coal mining operations can not only enhance their economic viability but also increase productivity while minimizing operational expenses. This comprehensive approach not only enhances the overall profitability of the coal sector but also serves as a robust strategy in combating climate change and elevating air quality standards.