In a major development, National miner Coal India Ltd (CIL) has unveiled plans to invest a whopping Rs 224,750 crore in 61 first-mile connectivity (FMC) projects, a move aimed at bolstering eco-friendly coal transportation. These projects, organized into three phases, are projected to have a combined coal-handling capacity of 765 million tonnes per annum (mtpa). FMCs, recognized for their safety and environmental benefits over conventional truck-based coal transportation, are at the forefront of CIL's strategy. This substantial investment is part of the Rs.20 trillion Aatmanirbhar Bharat Abhiyan package, with CIL making substantial strides toward full mechanization by 2027-28.
In a significant development, Coal India Ltd (CIL) unveiled plans to invest a staggering ?224,750 crore in a series of ambitious first-mile connectivity (FMC) projects aimed at revolutionizing eco-friendly coal transportation. The announcement comes as part of the ongoing effort to bolster the nation's coal infrastructure and promote sustainability.
CIL's visionary project comprises 61 FMC initiatives, organized into three distinct phases. Once completed, these projects will collectively possess a colossal capacity of 765 million tonnes per annum (mtpa) of coal, according to the official statement released by the company.
The utilization of first-mile connectivity systems is hailed for their eco-friendliness, safety enhancements, and operational efficiency, positioning them as a superior alternative to traditional coal transportation methods involving trucks.
To put this endeavour into context, in 2021, CIL initially planned for 35 FMC projects with a total capacity of 414.5 mtpa. Impressively, eight of these projects, with a capacity of 112 mtpa, are already operational.
This bold move is in alignment with the ?20 trillion Aatmnirbhar Bharat Abhlyan package introduced by the finance ministry in 2021. The package encompasses ?50,000 crore earmarked for the development of coal evacuation infrastructure and an additional ?18,000 crore designated for mechanized coal transport.
CIL further indicated that they are on the verge of commissioning 17 additional FMC projects with a cumulative capacity of 178 mtpa by the conclusion of the current financial year (FY24). The remaining projects, constituting a capacity of 124.5 mtpa, are slated to be fully operational by the following fiscal year (FY25).
In the upcoming phases, evacuation capacities will soar to 57 mtpa and 292 mtpa, with investments amounting to ?2,500 crore and ?11,500 crore, respectively. These first-mile connectivity projects will employ mechanized piped conveyor systems, facilitating the seamless transport of coal from production sites to coal handling plants/silos, equipped with rapid loading systems for efficient loading onto railway wagons.
Looking ahead, the second phase of the initiative is set to witness the commissioning of five projects, with a total capacity of 21.5 mtpa, expected to be operational by FY25. Concurrently, several other projects are in various stages of progress. The third and final phase will feature three projects, collectively boasting a capacity of 65 mtpa, with nine projects to be executed through mine developers and operators. These projects are projected to be commissioned by FY29, according to CIL.
Pramod Agarwal, former Chairman and Managing Director of CIL, emphasized the significance of this endeavour during an interview earlier this year. He outlined CIL's aim to fully mechanize the coal supply chain by 2027-28, emphasizing the adoption of digitalization, automation processes, cost-effective and energy-efficient technologies, improved operational efficiency, and enhanced coal quality as key drivers to reduce production costs.
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