Coal news and updates

Coal India to enhance capacity building with major rail and infrastructure projects by FY 29-30

Under the FMC initiatives, CIL is set to invest a total of ₹27,750 crore across four phases.

New Delhi: In a significant push to enhance the coal evacuation infrastructure, Coal India Limited (CIL) has embarked on a series of First Mile Connectivity (FMC) projects, aiming to mechanize coal transportation and loading systems, the company said.

Under the FMC initiatives, CIL is set to invest a total of ₹27,750 crore across four phases. In the first phase, 35 projects with an aggregate capacity of 414.5 million tonnes per annum (MTPA) have been awarded at a capital investment of ₹10,750 crore, with 9 projects of 127 MTPA already commissioned and the rest targeted for completion by FY 24-25.

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Phase-II includes 9 projects with a capacity of 57 MTPA, out of which work has commenced on five projects totaling 21.5 MTPA. The remaining projects are under various stages of approval and tender finalization, with completion aimed for FY 25-26.

In the subsequent phase, CIL has planned 17 projects with a capacity of 292 MTPA, and tenders for 3 projects are in the final stages. The company expects these projects to be completed by FY 28-29, while the fourth phase will see 14 projects with a capacity of 74 MTPA identified, targeted to be completed by FY 29-30.

Complementing the FMC projects, CIL is also fortifying its railway lines for coal evacuation, a key to capacity building. The East Rail Corridor in Chhattisgarh, the Shivpur-Kathautia rail connectivity in Jharkhand, and several others are underway. The CERL Phase – II, with land acquisition and forest clearance in the advanced stages, is anticipated to be commissioned by August 2026.

The Chhattisgarh East West Rail Ltd (CEWRL) – East West Rail Corridor is projected to be commissioned by December 2024, while the Jharsuguda-Barpali-Sardega line is expected to be completed by March 2024, enhancing its capacity to 65 MTPA.

CIL's move to mechanize and streamline coal transportation systems is set to substantially reduce evacuation and transportation charges, with an expected improvement in coal quality and a positive environmental impact. The company also plans to provision smaller size Coal Handling Plants (CHPs) with Rapid Loading Systems in all new mines with a capacity of more than 1 MTPA, wherever economically feasible.