Coal India Ltd has committed to investing approximately Rs 24,750 crore in the coming years for the development of 61 first-mile connectivity (FMC) projects. The aim is to enhance eco-friendly coal transportation. Once completed in three phases, these projects will have a combined capacity of 763.5 million tonnes per annum.

First-mile connectivity projects involve the use of mechanized piped conveyors to transport coal from production points to coal handling plants and silos equipped with a rapid loading system, allowing direct loading into rail wagons.

A senior Coal India official noted the importance of environmentally friendly coal transportation for the well-being of people living in coalfield areas. FMC projects offer several benefits, including the reduction of dust pollution and carbon emissions, a decrease in the reliance on road transportation for safety, and precise loading of coal for consumers with minimal manual intervention.

The first phase consists of 35 FMC projects with a capacity of 414.5 million tonnes, representing an investment of Rs 10,750 crore. Eight of these projects, with a capacity of 112 million tonnes, are already operational. Coal India plans to commission 17 more projects, totaling 178 million tonnes, in the current fiscal year. The remaining 10 projects, with a capacity of 124.5 million tonnes, are expected to be operational by FY 2025.

The second phase includes 9 projects with an evacuation capacity of 57 million tonnes, requiring an investment of approximately Rs 2,500 crore. The third phase encompasses 17 projects with an evacuation capacity of 292 million tonnes, requiring an investment of around Rs 11,500 crore. Five projects with a capacity of 21.5 million tonnes are currently under construction in the second phase, and tenders have been issued for the third phase, which includes 3 projects with a capacity of 65 million tonnes. Nine projects in the third phase will be executed through mine developers and operators, with a target completion date of FY 2029.

Initially, the first-phase FMC projects were focused on coal mines with a production capacity of 4 million tonnes and above. After a successful pilot study that demonstrated substantial reductions in CO2 emissions, air pollutants, ambient noise levels, and significant savings in diesel costs, Coal India expanded the scope to include mines producing 2 million tonnes and above in subsequent phases. When all 61 projects become operational by FY 2029, the total eco-friendly coal evacuation capacity will reach 914.5 million tonnes, including the earlier capacity of 151 million tonnes per annum.