CIL plans 17 more FMC projects worth Rs 11k cr, to float tenders by FY25

CIL has initiated 17 more First Mile Connectivity (FMC) projects under phase-III at an estimated cost of Rs 11,000 crore
CIL plans 17 more FMC projects worth Rs 11k cr, to float tenders by FY25
CIL plans 17 more FMC projects worth Rs 11k cr, to float tenders by FY25

Kolkata: Strengthening its network of eco-friendly coal transportation, Coal India Limited (CIL) has initiated 17 more First Mile Connectivity (FMC) projects under phase-III. At an estimated cost of Rs 11,000 crore, these projects have been planned for a loading capacity of 317 million tonnes per annum (MTPA). CIL is preparing a rollout plan to float tenders for the latest projects by FY25. Commissioning would be in two years thereon by FY27. These are in addition to existing 44 such projects that the company is actively pursuing under two phases, said an official statement on Friday.

Studies indicate environmental, economic benefits of FMC projects

Catalysed by positive results shown by a pilot study, in two of its OC mines, on environmental and economic benefits of loading through FMC projects, CIL is pursuing this mode actively. Results have indicated significant reduction in particulate matter, CO2 and other gaseous emissions compared to despatch through rail sidings.

Of the identified 17 projects, MCL and CCL would put up six each, followed by three projects of SECL. WCL and BCCL would put up one project each.

It is significant that MCL, CCL and SECL account for 15 of the upcoming projects. The present projection indicates that between them they would contribute to the bulk of future production at more than two-thirds of CIL's total.

1 MTPA coal projects will be covered under Phase III

"We have expanded the scope of loading through FMC projects. Now, every coal project having production capacity of 1 MTPA and more would move coal through FMC mode. This is subject to techno-economic viability and the 17 projects have been identified under this criterion," said a senior official of CIL. Under phase-I, only those projects having 4 MTPA output capacity were included for FMC mode evacuation.

The company is also supplementing FMC projects by dovetailing 12 rail connectivity projects with them at an estimated cost Rs 1,700 crore. The plan is to commission rail connectivity by FY27, when Phase III projects are expected to turn operational.

Around 24 rail connectivity links have already been identified for 35 Phase I FMC projects at a capex of Rs 3,660 crore. Of these, four are already commissioned and 20 under construction.

Including the existing 151 MT FMC evacuation capacity, all projects under three phases are aimed at transporting 940 MT of coal through environment-friendly transportation system. The loading capacity of 35 Phase I FMC projects and that of nine Phase II projects is 415 MT and 57 MT, respectively.

"Carbon footprint suppression would be sizeable when FMC projects are implemented at full capacity," said the executive.

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