Coal India announced plans to invest a total of Rs 14,000 crore in the second and third phases of its first-mile connectivity (FMC) projects. These FMC projects involve the mechanized transportation of coal through piped conveyors from production points to coal handling plants and silos with rapid loading systems for direct loading onto rail wagons.

The second and third phases of these projects consist of 9 and 17 individual projects, respectively, with evacuation capacities of 57 million tonnes per annum (MTPA) and 292 MTPA. The investments for these phases are expected to amount to about Rs 2,500 crore and Rs 11,500 crore, respectively, and will be spread across the subsidiaries of Coal India.

In the first phase, Coal India had identified 35 projects with a total capacity of 414.5 MTPA and investments of Rs 10,750 crore. Eight projects with a capacity of 112 MTPA are already operational. Coal India is on track to commission an additional 17 projects with a capacity of 178 MTPA by the end of the fiscal year 2024, and the remaining 10 projects with a capacity of 124.5 MTPA are expected to be operational by the fiscal year 2025.

The combined investment across all three phases will amount to Rs 24,750 crore, covering 61 projects with a total capacity of 763.5 MTPA once completed by fiscal year 2029. These FMC projects are aimed at environmentally friendly coal transportation to reduce pollution and emissions.

A senior Coal India official emphasized the importance of environmentally friendly coal transportation, citing benefits such as reduced dust pollution, carbon emissions, and noise levels, along with significant savings in diesel costs. The expansion of the project to include mines producing 2 MTPA and above in the subsequent phases was based on a pilot study conducted through the National Environmental Engineering Research Institute (NEERI), which demonstrated considerable environmental advantages.