Coal India initiates 17 FMC projects worth Rs11,000 crore under phase 3

21 Oct 2022 , 01:27 PM

Coal India Limited (CIL) has started 17 more first-mile connectivity (FMC) projects under phase III. These developments are expected to cost Rs11,000 crore and have a loading capacity of 317 million tonnes per year (MTPA).

CIL is creating a rollout strategy to issue tenders for the most recent projects by FY 2025. Commissioning would take place in two years, by FY 2027. This is in addition to the 44 existing projects that the business is actively pursuing in two segments, it stated.

CIL is aggressively pursuing this approach as a consequence of the favourable findings of a pilot study conducted at two of its OC mines on the environmental and economic benefits of loading through FMC projects. When compared to train sidings, the results show a considerable reduction in particulate matter, CO2, and other gaseous emissions.

MCL and CCL would each put up six of the listed 17 projects, followed by SECL with three. WCL and BCCL would each have their own project.

It is noteworthy that MCL, CCL, and SECL are responsible for 15 of the future projects. According to current projections, they would account for the majority of future output, accounting for more than two-thirds of CIL's total.

In addition, the business is supporting FMC projects with 12 rail connectivity projects for Rs1,700 crore. The Rail link is projected to be operational by FY 2027, when Phase III projects are expected to be completed.

At a cost of Rs3,660 crore, 24 rail connection lines have already been found for 35 Phase I FMC projects. Four of these are presently operational, with another twenty under development.

Including the present 151 MT FMC evacuation capability, the three stages of the project seek to transfer 940 MTs of coal via an environmentally friendly transportation system. The loading capacity of 35 Phase I FMC projects is 415 MTs, while 9 Phase II projects have a capacity of 57 MTs.

At around 1.25 PM, Coal India was trading at Rs239.35 down by 0.68% from its previous closing of Rs241 on the BSE. The scrip touched an intraday high and low of Rs241.35 and Rs239 respectively.

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