Coal India Ltd (CIL), the state-run behemoth responsible for more than 75 percent of the country’s coal production, is moving full steam ahead with its ambitious infrastructure expansion and decarbonization plans—even as the first quarter of fiscal 2025-26 saw a dip in coal demand and output. According to Business Standard, the company has earmarked a hefty ₹5,622 crore, or roughly 35 percent of its proposed ₹16,000 crore capital expenditure for the year, specifically for upgrading coal transportation and evacuation infrastructure. This includes new rail sidings, corridors, coal handling plants, silos, and roads, all designed to boost mechanized coal evacuation capacity from the current 151 million tonnes per annum (MTPA) to a staggering 994 MTPA by fiscal 2028-29.
The scale of this investment is not just about moving more coal; it’s about keeping pace with India’s evolving energy and industrial landscape. The company’s official roadmap remains clear: “The Indian growth story remains intact and we are positioning ourselves for future energy requirements,” a CIL official told Business Standard. Despite the recent downturn—production slipped by 3 percent to 183.32 million tonnes and offtake fell by 4 percent to 191 million tonnes in the June quarter—Coal India is holding firm to its long-term goal of hitting 1 billion tonnes of annual production by 2028-29.
This commitment comes at a time when India’s broader logistics sector is experiencing a transformation of its own. According to government data cited by IANS, the sector was valued at $215 billion in 2021 and is projected to grow at a robust compound annual growth rate (CAGR) of 10.7 percent through 2026. The government’s decision to grant infrastructure status to logistics has opened the door to cheaper, long-term funding—previously reserved for sectors like roads and railways—further fueling growth. Several key policy initiatives, such as the National Logistics Policy (NLP), PM GatiShakti, Goods and Services Tax (GST), and the creation of logistics parks, are streamlining infrastructure and slashing costs across the board.
It’s not just about numbers on a balance sheet. The logistics sector is a major employer, providing jobs for over 22 million people and creating millions more as new projects come online. Inland waterways, a sometimes overlooked component of India’s transport network, reported a record 145.5 million tonnes of cargo movement in 2024-25. Digitalization is also playing a pivotal role, with tech platforms like ULIP (Unified Logistics Interface Platform) making supply chains more efficient and transparent—no small feat in a country as vast and diverse as India.
India’s economic momentum is a critical backdrop to these developments. The country has maintained its status as the world’s fastest-growing major economy, boasting a real GDP growth rate of 6.5 percent in 2024-25. After a strong recovery from the pandemic, driven by services, manufacturing, and agriculture, India’s growth trajectory shows little sign of slowing. As IANS reports, stronger supply chains today mean a more resilient India tomorrow.
To make this vision a reality, the government has rolled out several major infrastructure projects. Chief among them is the PM GatiShakti Master Plan, launched in October 2021, which aims to integrate various transportation modes—rail, road, air, and waterways—into a seamlessly coordinated network. The plan brings together 57 central ministries and departments, as well as all 36 states and union territories, under a single digital platform that unifies an astonishing 1,700 data layers. This kind of coordination is unprecedented, and it’s already yielding tangible results.
The Ministry of Railways is at the heart of this push, developing two massive Dedicated Freight Corridors (DFCs): the Eastern Dedicated Freight Corridor (EDFC) stretching 1,337 kilometers from Ludhiana to Sonnagar, and the Western Dedicated Freight Corridor (WDFC), running 1,506 kilometers from Jawaharlal Nehru Port Terminal (JNPT) to Dadri. According to IANS, as of March 2025, 2,741 route kilometers—an impressive 96.4 percent of the total planned 2,843 kilometers—are already operational. These corridors are expected to supercharge industrial development and spawn significant employment opportunities in logistics and related sectors.
Coal India’s investments dovetail neatly with these national priorities. The company isn’t just focusing on coal; it’s also pouring capital into land acquisition, heavy earth moving equipment, washeries, and renewable energy projects. In fact, CIL has been scaling up its renewable energy ambitions in parallel with its core business. As of March 2025, the miner had commissioned 114 MW of solar capacity in fiscal 2024-25 alone, bringing its total installed solar power to 209.08 MW. This is part of a broader push to reach 3 GW of solar capacity by 2027-28, a key plank in its decarbonization roadmap.
“Already, there are signs of demand improvement after Coal India carried out various reforms for coal consumers,” a company official shared with Business Standard. The reforms, coupled with the ongoing infrastructure build-out, are designed to ensure supply reliability and help the company gradually diversify its portfolio. The dual focus on coal and renewables reflects the complex energy transition facing India—balancing the need for affordable, reliable power with environmental commitments and global climate goals.
It’s a balancing act echoed across the broader logistics and infrastructure sector. The creation of a separate logistics unit under the Department of Commerce in July 2017 was a crucial step, enabling more focused oversight and integrated development. With the PM GatiShakti Master Plan, the government has essentially created a digital nervous system for India’s physical infrastructure, allowing for better planning, faster execution, and more efficient use of resources.
Still, challenges remain. The recent dip in coal demand and production highlights the volatility and unpredictability of energy markets, even as the country’s long-term growth story remains strong. But with coordinated investments from both the public and private sectors, and a clear policy direction from the government, India’s logistics and energy infrastructure are on a path to becoming world-class.
The coming years will be crucial. If Coal India can ramp up its evacuation capacity as planned and meet its ambitious production and renewable energy targets, it will not only secure its own future but also provide a backbone for the country’s continued economic ascent. Meanwhile, the logistics sector’s modernization—powered by digitalization, new freight corridors, and streamlined policies—could turn India into a regional, if not global, logistics powerhouse.
As the numbers grow and the networks expand, the promise of a more connected, efficient, and sustainable India seems more tangible than ever, even if the road ahead is sure to have its bumps.
