CIL Invests Rs 24,750 Crores in Eco-Friendly Coal Transportation Projects

12 Sep 2023 , 01:53 PM

Coal India Limited (CIL) invests approximately Rs 24,750 Crores in 61 First Mile Connectivity (FMC) projects to promote eco-friendly coal transportation. These FMC projects will be executed in three phases and will collectively have a capacity of 763.5 million tonnes per annum (MTPA) upon completion.

FMC projects use mechanized piped conveyors to transport coal from production points to coal handling plants/silos with rapid loading systems, enabling direct loading into rail wagons. The aim is to make coal transportation environmentally friendly, reducing dust pollution, carbon emissions, and the burden on road transportation, enhancing safety, and ensuring precise quantity and quality of coal for consumers with minimal manual intervention.

The first phase comprises 35 FMC projects with a total capacity of 414.5 MTPA, with an investment of Rs. 10,750 Crores. Eight projects with 112 MTPA capacity are already operational, and 17 more projects totaling 178 MTPA are set to be commissioned by the end of FY 2024. The remaining 10 projects in the first phase, with a capacity of 124.5 MTPA, are expected to become operational by FY 2025.

The second and third phases consist of 9 and 17 projects, with evacuation capacities of 57 MTPA and 292 MTPA, respectively, and investments of about Rs. 2,500 Crores and Rs. 11,500 Crores, respectively. The second phase includes 5 projects with 21.5 MTPA capacity, expected to be commissioned by FY 2025. Other projects are in various stages of progress.

In the third phase, tenders have been issued for 3 projects with a capacity of 65 MTPA. Nine projects will be executed through mine developers and operators, with a target commissioning date of FY 2029. Initially, CIL focused on coal mines with production capacities of 4 MTPA and above for the first phase but expanded to include mines producing 2 MTPA and above in the subsequent phases.

When all 61 projects become operational by FY 2029, the total eco-friendly coal evacuation capacity will reach 914.5 MTPA, including the earlier capacity of 151 MTPA. This move aligns with CIL’s commitment to environmentally sustainable coal transportation methods.

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