FCC

Coal Supply Chain Strengthened Nationwide

2025-04-04

The Ministry of Coal has adopted multiple measures to improve the coal supply chain, ensuring efficient and cost-effective transportation. In February 2024, it launched the Coal Logistic Plan and Policy to enhance supply chain efficiency, lower costs, and promote sustainability.

A key initiative is the development of First Mile Connectivity (FMC) projects, which aim to streamline coal evacuation from mines using mechanised loading infrastructure such as conveyor belts and crushers. So far, 39 FMC projects have been completed, adding a total capacity of 386 million tonnes.

Rail infrastructure improvements are also underway to support faster coal transportation. Additionally, the Rail-Sea-Rail mode has been introduced as an alternative transport method, particularly benefiting coastal power plants and industries. This mode has significantly increased coal movement from 28 mn t in 2021-22 to 54 mn t in 2023-24.

Union Minister of Coal and Mines G Kishan Reddy provided these details in a written response in the Lok Sabha. The measures are expected to boost efficiency and support India's growing energy demands.