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CIL firms up Rs 11k-crore investment for eco friendly coal handling

Of the identified 17 projects MCL and CCL would put up 6 each followed by SECL with 3 projects. WCL and BCCL would have a solitary project each.

CIL firms up Rs 11k-crore investment for eco friendly coal handling
These projects are in addition to existing 44 such projects that the company is actively pursuing under two phases, a CIL executive said.

To strengthen its network of eco-friendly coal transportation, Coal India Limited (CIL) has initiated 17 more first mile connectivity (FMC) projects under phase-III at an estimated cost of Rs 11,000 crore. These projects have been planned for a loading capacity of 317 million tonne per annum (MTPA).

The company is preparing to float tenders for the latest projects by FY 2025. Commissioning of the projects would be in two years thereon by FY 2027. These projects are in addition to existing 44 such projects that the company is actively pursuing under two phases, a CIL executive said.

Catalyzed by positive results shown by a pilot study, in two of its open cast mines, on environmental and economic benefits of loading through FMC projects, CIL is pursuing this mode actively. Results have indicated significant reduction in particulate matter, CO2 and other gaseous emissions compared to despatch through rail sidings.

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Of the identified 17 projects MCL and CCL would put up 6 each followed by SECL with 3 projects. WCL and BCCL would have a solitary project each.

It is significant that MCL, CCL and SECL account for 15 of the upcoming projects. The present projection indicates that between them they would contribute to the bulk of future production at more than two-thirds of CIL’s total.

“We have expanded the scope of loading through FMC projects. Now, every coal project having production capacity of 1 MTPA and more would move coal through FMC mode. This is subject to techno-economic viability and the 17 projects have been identified under this criterion” said a senior official of CIL. Under phase-I, only those projects having 4 MTPA output capacity were included for FMC mode evacuation.

The company is also supplementing FMC projects by dovetailing 12 rail connectivity projects with them at an estimated cost `1,700 crore. The plan is to commission rail connectivity by FY 27 when Phase III projects are expected to turn operational.

CIL has already identified 24 rail connectivity links for 35 Phase I FMC projects at a capex of `3,660 crore. Of these 4 are already commissioned and 20 other are under construction.

Including the existing 151 MT FMC evacuation capacity, all projects under three phases are aimed at transporting 940 MTs of coal through environment friendly transportation system. The loading capacity of 35 Phase I FMC projects and that of 9 Phase II projects is 415 MTs and 57 MTs respectively.

“Carbon footprint suppression would be sizeable when FMC projects are implemented at full capacity” said the executive.

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First published on: 22-10-2022 at 05:50 IST