Coal minister Joshi launches coal logistics policy for infra development

The coal ministry is building an AI-powered dedicated logistics platform for the fossil fuel which would integrate all the existing central and state-level coal transport tracking systems

Aiming at transporting coal seamlessly across the country, the Union Ministry of Coal has drafted a logistics plan and policy in consultation with all stakeholders in the supply chain.

The plan, called “Coal Logistics Plan and Policy” and unveiled by Union Minister for Coal, Mines and Parliamentary Affairs Pralhad Joshi on Thursday, will bring together all agencies involved in mining, transport, monitoring, and usage on a single digital “smart” platform.

“There is a need for efficient logistics to meet the escalating energy demand projected to surge to 1.5 billion tonnes by 2030 from 980 million tonnes currently. The plan proposes a strategic shift to a railway-based system in first-mile connectivity projects, aiming at a 14 per cent reduction in rail logistics costs and an annual cost saving of Rs 21,000 crore,” Joshi said during the launch.

He said the approach under the plan would minimise air pollution, reduce traffic congestion, and cut carbon emission by approximately 100,000 tonnes per annum. Moreover, a 10 per cent saving in average turnaround time of wagons nationwide is expected, the minister said.

The ministry is building an artificial intelligence-powered dedicated logistics platform for the fossil fuel, which would integrate all the existing central and state-level coal transport tracking systems. The Smart Logistics Plan will entail tracking, managing and forecasting coal demand and supply from production to consumption, Business Standard reported in January. 

The other stakeholders that are part of the planning include the Ministry of Railways; Ministry of Ports, Shipping and Waterways; Coal India; NTPC; NITI Aayog; and private coal miners.

Amrit Lal Meena, secretary, Ministry of Coal, said as part of the plan there were proposals for extensive energy corridor projects, including constructing railway lines and capacity augmentation in existing lines.

“Coal is integral to India’s energy security and economic growth. I urge all the stakeholders to work in close coordination to ensure easy access to coal to everyone,” Meena said.

Transport remains one of the crucial issues in building enough coal stocks for thermal power units. In 2022, several power units reported critically low coal stocks and the railways had to stop and divert some passenger trains to run more coal-carrying rakes. Last year, the situation improved with the Centre promoting the rail-sea-rail route through inland waterways.

Action plan under new logistics plan:

·       New rail lines and capacity enhancement of existing lines

·       More Coal sidings, first mile connectivity projects, belt conveyor projects

·       Emphasis on rail-sea-rail routes for coal transport

·       Smart Coal Analytics Dashboard

·       Multimodal transport and its tracking

·       Data driven ‘Decision Support System’