New Delhi: Coal India Ltd (CIL), the national mining company, has revealed plans to invest Rs 24,750 crore in capital expenditure (capex) for the development of 61 first-mile connectivity (FMC) projects aimed at enhancing eco-friendly coal transportation.
Upon completion, these projects will be executed in three phases, and collectively possess a capacity of 765 million tonnes per annum (mtpa) for coal transportation, according to an official statement released on Tuesday.
The adoption of FMCs is seen as a more environmentally friendly, safer, and efficient alternative to traditional coal transportation methods that rely on trucks for moving coal from mines to rail sidings.
As of 2021, CIL had originally planned 35 FMC projects with a total capacity of 414.5 mtpa. Eight of these projects, with a capacity of 112 mtpa, are already operational.
This initiative is a part of the larger Rs 20 trillion Aatmnirbhar Bharat Abhiyan package, which was announced by the finance ministry in 2021. The package included Rs 50,000 crore for the creation of coal evacuation infrastructure and an additional Rs 18,000 crore for the mechanised transport of coal.
CIL has also revealed its plan to commission 17 more FMC projects, with a combined capacity of 178 mtpa, by the end of the current financial year (FY24). The remaining projects, totalling 124.5 mtpa in capacity, are projected to become operational by FY25.
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