Executive Summary:
The Ministry of Coal outlines the details, advantages, and progress of First Mile Connectivity (FMC) projects aimed at modernizing coal transportation. These projects focus on replacing road transport with mechanized systems, reducing environmental impact, and improving coal quality. The goal is to establish 102 FMC projects with a 1092 MT capacity by FY2030, with an estimated capital expenditure of ₹31,367.66 crore.
Key Points / Main Content:
* **Advantages of FMC Projects:**
* Reduces air pollution and greenhouse gas emissions by eliminating diesel-based truck movement.
* Enables faster, high-capacity, fully mechanized coal handling and loading, reducing bottlenecks.
* Preserves coal quality by minimizing manual handling and limiting losses during transit.
* Lowers operational and transportation costs through energy-efficient conveyance.
* Enhances occupational safety, lowers accident risks, and improves working conditions.
* **FMC Project Implementation:**
* Planned to set up 102 FMC projects with 1092 MT capacity by FY2030.
* 44 FMC projects with a capacity of 429.5 MTY are currently operational.
* Projected completion schedule:
* FY 2025-26: 11 projects (88 MTY)
* FY 2026-27: 12 projects (102 MTY)
* FY 2027-28: 15 projects (201 MTY)
* FY 2028-29: 18 projects (229 MTY)
* FY 2029-30: 2 projects (42 MTY)
* **Projected Coal Dispatch:**
* By FY 2029-30, projected coal dispatch through FMC is 1,092 MTPA.
* Company-wise projected dispatch via FMC:
* CIL: 994 MTPA (95.3% of total dispatch)
* NLCIL: 63.5 MTPA (84.1% of total dispatch)
* SCCL: 34.5 MTPA (38.3% of total dispatch)
* Approximately 90% of the total projected coal output from CIL, NLCIL, and SCCL is expected to be transported through FMC.
* **Capital Expenditure:**
* Total capital expenditure envisaged for the FMC projects is approximately ₹31,367.66 crore.
* Investment covers mechanized coal handling plants, rapid loading systems, closed conveyor networks, integrated silos, and railway sidings.
* **Improvement in Coal Quality:**
* FMC projects improve coal quality through closed conveyor systems and silos, reducing contamination.
* Mechanized loading ensures uniform sizing, controlled dispatch, and minimal manual handling.
* End users receive cleaner, more consistent coal, enhancing combustion efficiency and reducing emissions.
Impact Analysis:
* **Coal Companies (CIL, NLCIL, SCCL):**
* Impact: Increased efficiency in coal dispatch, reduced transportation costs, improved coal quality, and enhanced environmental performance.
* Action Required: Align production and dispatch strategies with FMC infrastructure, invest in necessary equipment, and ensure compliance with FMC standards.
* **End Users (Power Plants, Industries):**
* Impact: Access to cleaner, more consistent coal supply, improved combustion efficiency, reduced emissions, and enhanced operational reliability.
* Action Required: Adapt receiving infrastructure to accommodate mechanized coal handling, optimize combustion processes for improved coal quality, and collaborate with coal companies on supply chain management.
* **Local Communities:**
* Impact: Reduced air and noise pollution from decreased truck traffic, improved road safety, and potential employment opportunities in FMC project operations.
* Action Required: Support project implementation, participate in environmental monitoring programs, and seek opportunities for skill development and employment.
Key Entities Referenced
First Mile Connectivity: Initiatives focused on modernizing coal evacuation from mines using mechanized systems.
Ministry of Coal: The Indian government ministry responsible for coal production and management.
SHRI MANOJ TIWARI: Member of Parliament who raised a question regarding First Mile Connectivity projects.
SHRI KHAGEN MURMU: Member of Parliament who raised a question regarding First Mile Connectivity projects.
SMT. KAMLESH JANGDE: Member of Parliament who raised a question regarding First Mile Connectivity projects.
SHRI G. KISHAN REDDY: Minister of Coal and Mines who provided the answer to the parliamentary question.
CIL: Coal India Limited, a major coal producing company in India.
NLCIL: NLC India Limited, a coal and power generating company in India.
SCCL: Singareni Collieries Company Limited, a coal mining company in Telangana, India.
Financial Year 2029-30: The financial year by which the Ministry of Coal aims to dispatch a projected percentage of coal through the First Mile Connectivity route.
GOVERNMENT OF INDIA
MINISTRY OF COAL
LOK SABHA
UNSTARRED QUESTION NO. 4472
TO BE ANSWERED ON 20.08.2025
FIRST MILE CONNECTIVITY PROJECTS IN COAL TRANSPORTATION
4472 SHRI MANOJ TIWARI:
SHRI KHAGEN MURMU:
SMT. KAMLESH JANGDE:
Will the Minister of Coal be pleased to state:
(a) the details of key advantages of First Mile Connectivity (FMC) projects in coal
transportation;
(b) the total number of FMC projects currently operational/under implementation;
(c) the projected percentage of coal to be dispatched through the FMC route by the
Financial Year 2029–30;
(d) the total capital expenditure (CAPEX) envisaged for the completion of all FMC
projects; and
(e) the manner in which the FMC projects are likely to improve in the quality of coal
delivered to the end users?
ANSWER
MINISTER OF COAL AND MINES
(SHRI G. KISHAN REDDY)
(a) First Mile Connectivity (FMC) projects modernize coal evacuation by replacing
traditional road transport from mines with mechanized systems such as conveyor
belts, rapid loading systems, and integrated coal handling plants. Key advantages of
FMC projects are:
• These projects significantly reduce air pollution and greenhouse gas emissions by
eliminating diesel-based truck movement, while enclosed and dust-controlled
systems improve environmental performance.
• They enable faster, high-capacity, and fully mechanized coal handling and loading,
reducing bottlenecks and improving turnaround times.
• FMC systems preserve coal quality by minimizing manual handling and by limiting
losses during transit.
• Operational and transportation costs are lowered through direct, energy efficient
conveyance to rail sidings or loading points.
• Reduced road traffic enhances occupational safety, lowers accident risks and
improves working conditions in mining areas.
(b) The Ministry of Coal has planned to set up 102 first-mile connectivity projects
having 1092 MT capacity by FY2030 in a continuous manner. Presently, 44 FMC
projects having capacity of 429.5 MTY are operational. The timelines of FMC Projects
are as follows:Financial Year No. of Projects Capacity (MTY)
FY 2025-26
11 88
(Remaining Period)
FY 2026-27 12 102
FY 2027-28 15 201
FY 2028-29 18 229
FY 2029-30 02 42
TOTAL 58 662
(c) By FY 2029–30, upon completion of the above-mentioned FMC projects, the
projected coal dispatch through FMC is 1,092 MTPA — comprising 994 MTPA from
CIL, 63.5 MTPA from NLCIL, and 34.5 MTPA from SCCL.
Based on the available projected production figures:
Company Projected Dispatch via Projected Total % Dispatch
FMC (MTPA) Production (MTPA) via FMC
CIL 994 1,042.8 95.3%
NLCIL 63.5 75.5 84.1%
SCCL 34.5 90 38.3%
Total 1,092 1,208.3 90.5%
By FY 2029–30, about 90% of the total projected coal output from these three PSUs
is expected to be transported through FMC.
(d) The total capital expenditure envisaged for the FMC projects is about ₹31,367.66
crore. This investment covers mechanized coal handling plants, rapid loading
systems, closed conveyor networks, integrated silos, railway sidings, and associated
infrastructure to enable seamless mechanized coal evacuation.
(e) First Mile Connectivity (FMC) projects improve coal quality through closed
conveyor systems and silos, reducing contamination from dust, stones, and
moisture. Mechanized loading ensures uniform sizing, controlled dispatch, and
minimal manual handling, preventing degradation and grade mixing. As a result, end
users, especially power plants and industries—receive cleaner, more consistent
coal, enhancing combustion efficiency and reducing emissions. FMC projects mark a
key shift toward reliable and sustainable coal logistics.
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