Coal India commits Rs 24,000 crore for 61 eco-friendly FMC projects

The Maharatna company stated that the overall eco-friendly coal evacuation would rise to 914.5 MTPA, once all 61 projects become operational by FY 2029, including the earlier capacity of 151 MTPA.

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26 Aug, 2025 12:21

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Maharatna company Coal India Limited (CIL) will make a capital investment of nearly Rs 24,750 crore on 61 First Mile Connectivity (FMC) projects over the next couple of years in a bid to boost eco-friendly coal transportation, the company stated in an exchange filing.

The projects, which will be set up in three phases, will have a combined capacity of 763.5 million tonnes per annum (MTPA) on completion.

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

Speaking on the occasion, a senior CIL executive noted that environment-friendly coal transportation is essential to enhance the quality of life of people residing in and around coalfield zones.

"FMC projects provide benefits like curbing 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” added the official.

Under Phase I, there will be 35 FMC projects, with a total capacity of 414.5 MTPA capacity, worth Rs 10,750 crore. Already, eight projects of 112 MTPA capacity are currently operational, according to CIL's statement.

Coal India is working towards commissioning 17 more projects, with a total capacity of of 178 MTPA by the end of FY2024, the company has noted. It has further stated that the remaining 10 projects, of 124.5 MTPA capacity, will likely be operational by FY 2025.

Phase II and Phase III will comprise nine and 17 projects each. These projects will have respective evacuation capacities of 57 MTPA and 292 MTPA, with investments worth nearly Rs 2,500 crore and Rs 11,500 crore, sequentially.

Under Phase II, five projects, with a capacity of 21.5 MTPA, are currently under construction, and will likely be commissioned by FY 2025. The remaining four are in various stages of progress with tenders issued and bid document under preparation.

For Phase III, tenders have been already been floated for three projects of 65 MTPA capacity, the company has noted.  It also added that nine projects will be executed through mine developers and operators. CIL anticipates all projects under this phase to be commissioned by FY 2029.

Coal India had initially targeted coal mines with a production capacity of 4 MTPA and above for the first phase. However, a pilot study carried out through NEERI on the potential advantages of FMC projects, in two major OC projects, reported substantial reduction in CO2 emissions, air pollutants, ambient noise levels and significant savings in diesel costs. Hence, CIL later expanded the ambit, including mines producing 2 MTPA and above in the subsequent two phases, the company said.

The Maharatna company stated that the overall eco-friendly coal evacuation would rise to 914.5 MTPA, once all 61 projects become operational by FY 2029. This includes the earlier capacity of 151 MTPA, it noted.