Coal news and updates

Coal India to boost mechanized evacuation capacity, invests ₹24,750 crore in connectivity projects

The project is spread across three phases. Phase-I involves 35 projects, with a capital outlay of ₹10,750 crore, and aims for completion by FY 24-25. Of these, 9 projects with a cumulative capacity of 127 MTPA are already commissioned.

New Delhi: In a significant move to enhance its coal transport and loading mechanism, Coal India Limited (CIL) has undertaken a large-scale project named 'First Mile Connectivity', projected to amplify the mechanized evacuation capacity from 151 MTPA to 914.5 MTPA by FY 28-29.

The project is spread across three phases. Phase-I involves 35 projects, with a capital outlay of ₹10,750 crore, and aims for completion by FY 24-25. Of these, 9 projects with a cumulative capacity of 127 MTPA are already commissioned.

Phase-II encompasses 9 projects with a total capacity of 57 MTPA, backed by an estimated investment of ₹2,500 crore. Work on 5 FMC projects of 21.5 MTPA capacity has commenced, with the remaining under tender finalization. Completion of all Phase-II projects is targeted for FY 24-25.

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The third phase includes 17 projects with a total capacity enhancement of 292 MTPA, planned at an investment of about ₹11,500 crore. Tenders for two projects are underway, and the rest are expected to be initiated by FY 25-26, with the completion horizon set for FY 28-29.

The company has disclosed a total envisaged investment of ₹24,750 crore for these projects. Additionally, CIL has resolved to implement smaller-sized Coal Handling Plants equipped with rapid loading systems in all new mines capable of handling over 1 MTPA, subject to economic and technical viability.

This infrastructure upgrade is anticipated to not only improve the coal quality and reduce operational costs but also to have a favourable impact on the environment through reduced under-loading and overloading charges. The program is also expected to significantly decrease evacuation and transportation charges.