State-run miner Coal India has planned capital investment of around Rs 24,750 crore in the next few years into 61 first-mile connectivity (FMC) projects in a push towards eco-friendly coal transportation.
When completed, these projects, to come up in three phases, will have a combined capacity of 763.5 million tonne per annum (MTPA).
“FMC projects involve transportation of coal in mechanised piped conveyors from production point to coal handling plants/silos with rapid loading system, where coal is loaded directly into rail wagons,” Coal India said in an exchange filing on Tuesday.
It is essential that coal transportation is environment-friendly to improve the quality of life of people living in the proximity of coalfield areas, a senior CIL official said.
FMC projects offer benefits like suppression of dust pollution and carbon emissions. “They also reduce the load on road transportation leading to safety. Other benefits include precise quantity and quality coal is loaded for consumers with minimal manual intervention,” the official said.
As many as 35 FMC projects are under the first phase, having 414.5 MTPA capacity and accounting for Rs 10,750 crore investment. Of these, eight projects of 112 MTPA capacity are already operational. CIL is gearing up to commission 17 more projects of 178 MTPA by FY24-end. The remaining 10 projects, comprising 124.5 MTPA capacity, are expected to be operative by FY25.
The second and third phases will have nine and 17 projects, respectively. While their respective evacuation capacities are 57 MTPA and 292 MTPA, the investments sequentially, would be about Rs 2,500 crore and Rs 11,500 crore. In the second phase, five projects of 21.5 MTPA capacity are under construction and these are expected to be commissioned by FY25. The remaining projects are in different stages of progress with tenders issued and bid document under preparation.
“For the third phase, tenders have been floated for three projects of 65 MTPA capacity. Nine projects are to be executed through mine developers and operators. Phase three projects are anticipated to be commissioned by FY29,” the company added.