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Coal India Accelerates Eco-Friendly Coal Transportation: A 34% Surge in FY25

Coal India Limited (CIL), the world's largest coal producer, has reported a significant 34% year-on-year increase in environment-friendly coal transportation, reaching 102.5 million tonnes in the fiscal year 2024–25 (FY25). This growth is attributed to the implementation of First Mile Connectivity (FMC) projects, which aim to revolutionize coal transportation by minimizing environmental impact.


"We expect to transport an estimated incremental quantity of 20 MTs through FMC projects in the ongoing financial year," said a senior official of CIL | Business Standard
"We expect to transport an estimated incremental quantity of 20 MTs through FMC projects in the ongoing financial year," said a senior official of CIL | Business Standard

First Mile Connectivity (FMC): Revolutionizing Coal Transport

FMC projects involve the transportation of coal through mechanized piped conveyors from production points to coal handling plants or silos equipped with rapid loading systems. This method replaces traditional truck-based transportation, thereby reducing dust, noise, and vehicular emissions, and enhancing overall safety. In FY25, CIL operated 20 FMC projects linked with the Indian Railway network, up from 17 projects in FY24.


Strategic Investments and Expansion Plans

CIL has committed a capital investment of approximately ₹24,750 crore over the next few years to develop 61 FMC projects across three phases. These projects are expected to have a combined capacity of 763.5 million tonnes per annum (MTPA) upon completion. The first phase includes 35 projects with a capacity of 414.5 MTPA, with several already operational. The second and third phases will add capacities of 57 MTPA and 292 MTPA, respectively.


Integration with National Infrastructure Initiatives

The FMC projects align with the Indian government's PM Gati Shakti National Master Plan, which aims to enhance multi-modal connectivity and infrastructure development. Recent approvals for railway multi-tracking projects, such as the fourth line between Wardha and Ballarshah in Maharashtra, are expected to bolster coal transportation efficiency and reduce logistics costs. 


Environmental and Economic Benefits

The shift to mechanized coal transportation through FMC projects offers several advantages:


  • Environmental Impact: Reduction in dust pollution and carbon emissions.

  • Operational Efficiency: Precise loading of coal into wagons, minimizing over or underloading.

  • Safety: Decreased road congestion and vehicular traffic in mining areas.

  • Economic Gains: Lower transportation costs and improved turnaround times for wagons.


These benefits contribute to improved quality of life for communities near coalfield areas and support India's commitment to sustainable development.


Future Outlook

CIL plans to commission 19 additional FMC projects with a combined capacity of nearly 150 MTPA during FY26. By FY29, the company aims to have 92 FMC projects operational, collectively handling approximately 994 MTPA. This expansion aligns with CIL's target of achieving 1 billion tonnes of coal production by FY29, ensuring that nearly the entire output is transported in an environmentally sustainable manner.


Conclusion

Coal India's commitment to eco-friendly coal transportation through substantial investments in FMC projects marks a significant step towards sustainable mining practices. By integrating advanced mechanized systems and aligning with national infrastructure initiatives, CIL is poised to enhance operational efficiency, reduce environmental impact, and contribute to India's energy security goals.


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