- Why in news
- On 20 July 2026, the Minister of State for Coal told Rajya Sabha that 72 of 139 First Mile Connectivity (FMC) projects are commissioned, and set out progress under the Coal Logistics Plan and Policy 2030.
- What it is
- First Mile Connectivity (FMC) projects move coal from the mine face to rail loading points using mechanised systems such as silos, rapid loading systems and conveyors, instead of trucks. They sit within the Coal Logistics Plan and Policy 2030, which aims to raise the rail share of coal movement and cut delivered cost.
- FMC project scale
- 139 FMC projects with 1,319 MTPA capacity are planned for implementation by FY 2029-30.
- Progress so far
- 72 projects (about 589 MTPA) are commissioned; 67 are at implementation, tendering or planning stages.
- Rail share target
- The plan targets 75% of coal transport by rail by FY2030, reducing reliance on costlier road movement.
- Rail-Sea-Rail incentive
- CIL cut the Performance Incentive for supplies beyond ACQ from 40% to 20% for coal moved by Rail-Sea-Rail mode.
Don’t confuse with First mile vs last mile: First mile is mine to loading point or rail siding; last mile is the final link to the consumer or terminal.
Don’t confuse with Rail-Sea-Rail vs all-rail: RSR moves coal by rail to a port, by coastal ship, then by rail again; all-rail stays on rail throughout.
Economy terms and data: 42 Prelims questions since 2013, rising in recent years; they test what a term or instrument means. In Mains, 12 news-triggered questions.
Why it matters
- Cuts logistics cost and transit losses, helping power plants and consumers.
- Reduces truck congestion and pollution, and supports rising domestic coal output.
Problems
- Rail congestion on high-density routes and shortage or slow turnaround of rakes.
- Delays in land acquisition, forest and environmental clearances, and weak terminals for coastal and waterway modes.
Way forward
- Speed up clearances through regular review with Railways, States and coal companies.
- Build terminals and last-mile links to make coastal shipping and waterways workable.
Put in your answer
Integrated Coal Logistics Plan: Ministries of Coal, Railways, Power and Road Transport & Ports jointly aim for a technology-enabled, multimodal, low-cost coal logistics system.
Mechanised loading benefits: Silos and rapid loading systems reduced rake loading time, improved wagon use and cut handling losses.
- 2017Mains GS1 · Q6Whether coal mining is inevitable for development despite environmental harm
- 2022Mains GS2 · Q6Gati Shakti needs government and private coordination to achieve connectivity goals
- 2014Mains GS3 · Q15Environmental impacts of coal-fired thermal plants located at coal pitheads
UPSC’s own questions that come close to this issue, from our Prelims and Mains banks.
No practice question for this one; the card may still help an answer. Why: Lasting infrastructure topic with bottlenecks, but mostly project counts; Prelims fact hooks are weak.
Worth revising until Prelims 2028: most news questions come within two years of the event.