Coal India commits Rs 24,750 crore for 61 eco-friendly projects

Coal India Ltd has committed a capital investment of about Rs 24,750 crore in the next few years on as many as 61 first-mile connectivity (FMC) projects in a bid to boost eco-friendly coal transportation.

In a statement, the world's largest coal producer said the projects, which will be set up in three phases, will have a combined capacity of 763.5 million tonnes per annum on completion.

FMC projects involve the transportation of coal in mechanized piped conveyors from production points to coal handling plants/silos with a rapid loading system where coal is loaded directly into rail wagons.

"It is essential that coal transportation is environment friendly to improve the quality of life of people living in the proximity of coalfield areas.

"FMC projects offer benefits like suppression of dust pollution and carbon emissions. They also reduce the load on road transportation leading to safety. Other benefits include precise quantity and quality coal is loaded for consumers with minimal manual intervention," said a senior CIL official.

As many as 35 FMC projects under the first phase having 414.5 million tonnes capacity account for Rs 10,750 crore. Of these, eight projects of 112 million tonnes capacity are already operational.

Coal India is gearing up to commission 17 more projects of 178 million tonnes by current fiscal, it said, adding the remaining 10 comprising 124.5 million tonnes of capacity are expected to be operative by FY 2025 (April 2024 to March 2025 fiscal year).

"The second and third phase projects account for 9 and 17 respectively. While their respective evacuation capacities are 57 million tonnes and 292 million tonnes, the investments sequentially, would be about Rs 2,500 crore and Rs 11,500 crore," the statement said.

Under the second phase, 5 projects of 21.5 million tonnes capacity under construction are expected to be commissioned by FY 2025. The remaining projects are in different stages of progress with tenders issued and bid document under preparation.

For the third phase, tenders have been floated for 3 projects of 65 million tonnes capacity. Nine projects are to be executed through mine developers and operators. Phase three projects are anticipated to be commissioned by FY 2029.

Initially, CIL targeted coal mines having a production capacity of 4 million tonnes and above under the first phase.

After a pilot study conducted through NEERI on potential advantages of FMC projects reflected sizable reduction in CO2 emissions, air pollutants, ambient noise levels and significant savings in diesel costs, CIL expanding the ambit included mines producing 2 million tonnes and above in subsequent two phases.

Total eco-friendly coal evacuation would go up to 914.5 million tonnes when all 61 projects become operational by FY 2029, including the earlier capacity of 151 million tonnes per annum, the company said.