Coal India Limited (CIL) is gearing up to significantly enhance its coal transportation infrastructure by commissioning 19 new First Mile Connectivity (FMC) projects in the fiscal year 2025-26 (FY26). This initiative is part of CIL's broader strategy to increase coal production, improve transportation efficiency, and reduce its environmental footprint.
The FMC projects are designed to provide an automated and eco-friendly system for coal evacuation from pitheads to loading points. This involves constructing mechanized coal handling plants equipped with crushers for sizing the coal and rapid loading systems for efficient and accurate loading into railway wagons. By utilizing conveyor belts, these projects aim to eliminate the need for truck-based transportation and manual loading, thereby minimizing environmental pollution and enhancing operational efficiency.
CIL's focus on FMC projects has already yielded positive results. In FY25, the company transported 102.5 million tonnes (MT) of coal through 20 operational FMC projects, a 34% increase compared to the 76.5 MT transported in FY24 via 17 projects. This increase in FMC usage has led to a 5% reduction in underloading charges and improved the grade conformity of the loaded coal, as the mechanized systems ensure better quality control. For FY26, CIL is aiming to transport approximately 125 MT of coal through FMC projects.
The commissioning of these 19 new FMC projects in FY26 will add a capacity of 150 million tonnes per year. A senior official at Coal India stated that the company expects to transport an incremental quantity of 20 MT through FMC projects in the ongoing financial year. By the end of FY29, CIL plans to have 92 FMC projects with a combined capacity of 994 MT per year.
These efforts align with CIL's ambitious goal of producing 1 billion tonnes of coal by FY29. The development of efficient and environmentally friendly coal transportation methods is crucial for achieving this target. The Ministry of Coal has set a coal production target of 1,150.39 million tonnes (MT) for FY26, with CIL and its subsidiaries expected to contribute 875 MT.
The Ministry of Coal is also working on the National Coal Logistic Plan, which includes strengthening the rail network in coalfields and establishing railway sidings near coal mines to further improve coal evacuation. The ministry aims to produce 1.31 billion tonnes of coal by FY25 and 1.5 billion tonnes by FY30, highlighting the importance of cost-efficient, fast, and environmentally friendly coal transportation.
In addition to increasing production and improving logistics, CIL is also focusing on diversifying its operations and investing in renewable energy projects. CIL has planned a capital expenditure of ₹16,000 crore for FY26, which will be allocated to coal production, renewable energy, and thermal power projects. The company aims to achieve a 3 GW solar capacity by 2028 and is also exploring coal gasification, pumped storage, and critical minerals to enhance sustainable growth.
The expansion of FMC projects and other infrastructure developments will play a vital role in Coal India's ability to meet the growing demand for coal while minimizing environmental impact and ensuring efficient operations.
