Tuesday, July 5, 2022

Govt developing 14 railway projects across 3 states for coal evacuation

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  • These projects will cover a distance of 2,680 Km approximately, which will be spread across the states of Jharkhand, Odisha and Chhattisgarh
  • Once these projects are commenced, they are expected to augment the coal evacuation capacity to the amounts of 410 MTPA

New Delhi: To facilitate smooth movement of coal while ensuring clean environment, the government is developing 14 railway projects for coal evacuation, said the Ministry of Coal in an official statement on Friday. “Fourteen Railway Projects are being undertaken towards increasing the efficiency and further enhancing the capacity of coal evacuation process which will help in reducing the time and cost incurred in the transportation of the coal,” said the statement. These projects will cover a distance of 2,680 Km approximately, which will be spread across the states of Jharkhand, Odisha and Chhattisgarh, said the ministry.

Railway coal evacuation projects: Estimate cost Rs 22,067 cr 

The total estimated cost for these projects is expected to be Rs 22,067 crore. “Once these projects are commenced, they are expected to augment the coal evacuation capacity to the amounts of 410 MTPA. The transportation of the coal through railway will also provide better connectivity and reach,” said the statement.

The Ministry of Coal is aiming to develop the entire evacuation channel starting right from the mines by investing in development of SILOs, CHPs going up to the last channel and developing the railway sidings and constructing multiple railway lines to facilitate smooth movement of coal across the country, it added.

Transporting coal via road over longer distances poses some major pitfalls and is detrimental to the environment and dents the coal miners’ pocket with increased cost of transportation. Presently, Coal India Limited (CIL) incurs about Rs 3,400 crore on transportation charges of coal. Also, large volumes of coal are transported via road, which many a times lead to accidents while passing through rural areas because of narrow and poorly maintained road structures. To avert these hindrances, the government has projected to invest in alternative modes of transport, like rail, inland waterways, coastal shipping etc. These modes are aimed towards increasing the efficiency and effectiveness of the transportation of coal.

At present, coal is being transported majorly through railways, followed by road transportation and MGRs.

CIL to invest Rs 14,200 crore by FY 2023-24 on FMC projects

“The Government of India is presented with a challenge to reduce the logistics cost from production centre to consumption centre and to counter these they are taking up various projects for First Mile Connectivity (FMC). This project will make the transportation of coal from point of production to the point of consumption a hassle free process. The investment amount to be infused by Coal India for the First Mile Connectivity projects is estimated at Rs 14,200 crore by FY 2023-24, in two phases for its 49 FMC projects. To further increase the transportation of coal, CIL has placed Rapid Loading System (RLS) in 19 mines of CIL,” said the statement.

CIL is constructing 21 additional railway sidings at an estimated investment of Rs 3,370 crore across four of its subsidiaries. These projects, which include both green field and brown field ones, will be commissioned by FY24. The sidings will add fillip to CIL’s first-mile connectivity efforts, acting as effective coal evacuation outlets. The company is aiming to move about 555 MT of coal per year through mechanised means by FY24.

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