Coal India Limited is planning to invest INR 24,750 crore for the commissioning of 61 first-mile connectivity projects. The projects with a combined capacity of 763.5 million TPA shall be executed in 3 phases, with completion expected in FY 2029.
Sep 12, 2023
Coal India Limited (CIL) is planning a capex investment of INR 24,750 crore for 61 first-mile-connectivity (FMC) projects, with a combined capacity of 763.5 MTPA. The investment will be spent over the next few years, and projects will be completed in a phased manner. On operation of 61 projects, estimated by FY 2029, eco-friendly coal evacuation would go up to 914.5 MTPA, including the earlier capacity of 151 MTPA.
FMC projects involve the transportation of coal in mechanized piped conveyors from production points to coal handling plants/silos with a rapid loading system where coal is loaded directly into rail wagons.
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“It is essential that coal transportation is environment friendly to improve the quality of life of people living in the proximity of coalfield areas. 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” said a senior CIL official.
In Phase 1, 35 FMC, with a combined capacity of 414.5 MTPA shall be executed at a cost of INR 10,750 crore – 8 FMC projects (112 MTPA combined capacity) are already operational; 17 projects (178 MTPA combined capacity) shall be commissioned by FY 2024 end; 10 projects (124.5 MTPA combined capacity) will become operative by FY 2025.
9 projects, combined evacuation capacity of 57 MTPA, shall be executed in Phase 2 at an investment of INR 2,500 crore, wherein 5 projects (21.5 MTPA capacity) will be commissioned by FY 2025. Apart from 5 under-construction projects, tenders and bid documents are being prepared for the rest.
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In Phase 3, 17 projects with a combined capacity of 292 MTPA shall be executed at INR 11,500 crore cost. Tenders for 3 projects of 65 MTPA capacity have already been floated, 9 projects will be executed through mine developers and operators, and all the projects’ commissioning is expected by FY 2029.
Initially, for Phase 1, CIL targeted coal mines with 4 MTPA and more production capacity, however after a pilot study through NEERI, CIL expanded the ambit to include mines with 2 MTPA and above capacity for subsequent phases.
