CIL to boosts capacity with 35 operational FMC projects

23 Jul 2024 CW Team

Coal India Limited (CIL) has significantly scaled up its First Mile Connectivity (FMC) projects with an additional 72 FMC initiatives aimed at augmenting coal transport capacity by 837.5 million tonne per year (MTY). This expansion, which totals an investment of Rs 277 billion, is self-financed by CIL, as stated in a response by Union minister of coal and mines G. Kishan Reddy, in the Rajya Sabha.

The company, which had previously established 20 FMC projects with a capacity of 151 MTY before August 2019, has now commissioned 15 out of the newly identified 72 projects, adding another 200.5 MTY to its capacity. To date, 35 FMC projects are now functional under CIL's expansion plan.

In his written reply, Reddy detailed the financial strategy for the massive expansion, emphasizing that all costs will be covered through CIL?s internal resources without external funding.

Additionally, the ministry of coal is managing three central sector schemes in the current financial year, with substantial budgets allocated for enhancing coal and lignite exploration, research and development, and safety and infrastructure in coal mines. The schemes are allocated Rs.730 crore, Rs.21 crore, and Rs.92.5 crore respectively.

Moreover, the government has launched a new Rs 85 billion scheme to support Coal and Lignite Gasification projects through viability gap funding. This initiative is divided into three categories: Category I with Rs.4,050 crore for government PSUs, Category II with Rs 38 billion available for both private sector and government PSUs, and Category III with Rs 6 billion allocated for demonstration or small-scale projects.

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