First Mile Connectivity Projects in Coal Transportation

First Mile Connectivity Projects in Coal Transportation

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 :

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 is as follows: 

Financial Year

No. of Projects

Capacity (MTY)

FY 2025-26 (remaining period)

11

88

FY 2026-27

12

102

FY 2027-28

15

201

FY 2028-29

18

229

FY 2029-30

02

42

TOTAL

58

662

 

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 FMC (MTPA)

Projected Total Production (MTPA)

% Dispatch 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 using FMC.

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.

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.

This information was given by Union Minister of Coal and Mines Shri G. Kishan Reddy in a written reply in Rajya Sabha today.