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Coal India Limited Embarks on 'First Mile Connectivity' Project to Enhance Coal Transport Capacity

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Coal India Limited Embarks on 'First Mile Connectivity' Project to Enhance Coal Transport Capacity

Posted on : 05-12-2023 | Author : Saurav Anand

Photo by ETEnergyWorld

Coal India Limited (CIL) has initiated a significant venture named 'First Mile Connectivity' aimed at enhancing its coal transport and loading infrastructure. The project is designed to amplify the mechanized evacuation capacity from 151 MTPA to 914.5 MTPA by the fiscal year 2028-2029.

The project unfolds in three distinct phases. The first phase comprises 35 projects with a capital outlay of ₹10,750 crore, targeting completion by the fiscal year 2024-2025. Already, 9 projects with a combined capacity of 127 MTPA have been commissioned.

Moving to the second phase, it encompasses 9 projects with a total capacity of 57 MTPA, backed by an estimated investment of ₹2,500 crore. The commencement of work on 5 projects, constituting 21.5 MTPA capacity, has begun, with the remaining projects in the phase undergoing tender finalization. The slated completion for all Phase-II projects is set for FY 24-25.

Phase-III includes 17 projects aimed at enhancing total capacity by 292 MTPA, with an approximate investment of about 11,500 crore. Tenders for two projects are underway, while the rest are projected to commence by FY 25-26, with completion anticipated by FY 28-29.

The total envisaged investment for these projects by CIL amounts to 24,750 crore. Additionally, the company has resolved to implement smaller-sized Coal Handling Plants equipped with rapid loading systems in new mines capable of handling over 1 MTPA, contingent upon economic and technical feasibility.

This infrastructure upgrade is expected not only to enhance coal quality and reduce operational costs but also to positively impact the environment by minimizing under-loading and overloading charges. The program is forecasted to notably decrease evacuation and transportation expenses.