Will India Establish 102 First-Mile Coal Connectivity Projects by FY30?
Click to start listening
Synopsis
The Indian government is set to revolutionize coal evacuation with plans for 102 first-mile connectivity projects by FY30. This initiative will not only modernize coal transport but also significantly reduce pollution and improve efficiency. Discover how these developments could transform the coal industry in India.
Key Takeaways
- 102 FMC projects planned by FY30.
- Current operational capacity is 429.5 MTY.
- Investment of Rs 31,367 crore anticipated.
- Major reduction in air pollution.
- Expected job creation of 7,098 opportunities.
New Delhi, Aug 18 (NationPress) The Ministry of Coal has announced plans to implement 102 first-mile connectivity (FMC) projects by FY30 to enhance coal evacuation throughout the nation, as stated by the government on Monday.
Currently, there are 44 FMC projects with a capacity of 429.5 million tonnes per year (MTY) in operation. Union Minister of Coal and Mines, G. Kishan Reddy, noted that an additional 58 projects are expected to commence operations before FY30.
The FMC projects aim to modernise coal evacuation by transitioning from traditional road transport to mechanised solutions, including conveyor belts, rapid loading systems, and integrated coal handling plants.
By eliminating diesel truck movement, these projects significantly diminish air pollution and greenhouse gas emissions. They facilitate quicker, high-capacity, fully mechanised coal handling and loading, thereby alleviating bottlenecks and enhancing turnaround times.
“The total capital expenditure for the FMC projects is projected to be around Rs 31,367 crore. This investment encompasses mechanised coal handling plants, rapid loading systems, closed conveyor networks, integrated silos, railway sidings, and related infrastructure for efficient mechanised coal evacuation,” the minister revealed.
“FMC systems maintain coal quality by reducing manual handling and limiting losses during transportation. Operational and transport costs are decreased through direct, energy-efficient conveyance to rail sidings or loading points. Additionally, decreased road traffic boosts occupational safety, lowers accident risks, and improves working conditions in mining regions,” the minister elaborated.
By FY 2029–30, it is anticipated that nearly 90 percent of the projected coal output from India’s three major PSUs will be transported using FMC.
This month, the government also reported the successful auction of seven coal blocks, which includes three fully explored and four partially explored blocks.
These blocks are projected to generate an annual revenue of approximately Rs 719.90 crore (excluding partially explored blocks), likely attracting a capital investment of around Rs 787.50 crore and creating 7,098 job opportunities.
Point of View
It is crucial to recognize that this ambitious undertaking by the Ministry of Coal aligns with national interests by advancing infrastructure and promoting sustainable practices in the coal sector. By modernizing coal evacuation systems, India is taking a significant step towards reducing environmental impact while ensuring economic growth.
NationPress
09/09/2025
Frequently Asked Questions
What are first-mile connectivity projects?
First-mile connectivity projects involve the modernization of coal transport from mines to loading points, utilizing mechanised systems to enhance efficiency and reduce environmental impact.
How many FMC projects are currently operational?
Currently, there are 44 FMC projects operational in India, with a combined capacity of 429.5 million tonnes per year.
What is the expected investment for these projects?
The total capital expenditure for the FMC projects is estimated to be around Rs 31,367 crore.
What benefits do FMC projects provide?
FMC projects significantly reduce air pollution, lower operational costs, improve coal quality, and enhance occupational safety.
When are the additional FMC projects expected to be operational?
An additional 58 FMC projects are set to become operational before FY30.
