Coal India’s ₹11,000 crore push for eco-friendly coal transport under phase 3

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Coal India has initiated 17 more first-mile connectivity (FMC) projects under phase 3. The largest government-owned coal-producer in the world has launched eco-friendly coal transport projects with an estimated cost of a whopping 11,000 crore. These projects are planned for a loading capacity of 317 million tonnes per annum (MTPA).

According to the regulatory filing on Friday, from the identified 17 projects MCL and CCL would put up 6 each followed by SECL with 3 projects. WCL and BCCL would have a solitary project each.

A senior official of Coal India said, “We have expanded the scope of loading through FMC projects. Now, every coal project having a production capacity of 1 MTPA and more would move coal through FMC mode. This is subject to techno-economic viability and the 17 projects have been identified under this criterion.”

“Carbon footprint suppression would be sizeable when FMC projects are implemented at full capacity,” the executive added.

Meanwhile, the regulatory filing said, it is significant that MCL, CCL, and SECL account for 15 of the upcoming projects. The present projection indicates that between them they would contribute to the bulk of future production at more than two-thirds of CIL’s total.

The 17 projects are in the addition to the existing 44 such projects that the company is actively pursuing under two phases. During the first phase, only those projects having 4 MTPA output capacity were included for FMC mode evacuation.

Coal India is preparing to roll out a plan to float tenders for the latest projects by FY 2025. While commissioning would be in two years thereon by FY 2027.

Also, Coal India is supplementing FMC projects by dovetailing 12 rail connectivity projects with them at an estimated cost of 1,700 crore. The plan is to commission rail connectivity by FY 2027 when Phase III projects are expected to turn operational.

Notably, a total of 24 rail connectivity links have already been identified for 35 Phase I FMC projects at a Capex of 3,660 crore. Of these 4 are already commissioned and 20 under construction.

Along with the existing 151 MT FMC evacuation capacity, all projects under three phases are aimed at transporting 940 MTs of coal through environment-friendly transportation system. The loading capacity of 35 Phase I FMC projects and that of 9 Phase II projects is 415 MTs and 57 MTs respectively.

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