CIL plans to transport 20 mt more coal through eco-friendly FMC projects in FY26

State-run coal behemoth Coal India is planning to transport at least 20 million tonnes (mt) of additional coal through environment-friendly first-mile connectivity (FMC) projects linked with the Indian Railway network, this fiscal.

The company is looking to transport a total of around 125 mt of coal through FMC projects in FY26 compared to 102.5 mt transported through this environment-friendly coal transportation mode in FY25.

CIL’s coal transportation through 20 FMC projects grew around 34 per cent last financial as compared to the 76.5 mt through 17 FMC projects in FY24.

First Mile Connectivity uses piped conveyor belts to transport coal from pithead to loading points, eliminating road transportation of coal in mining areas. According to Coal India, FMC reduces truck movements of coal in mining areas, ensuring a reduction in carbon emission, particulate matter, and other gaseous emissions. It also leads to better road safety and avoids traffic congestion. 

In a stock exchange filing on Thursday, Coal India stated that during the first two months of this fiscal — April and May — the company witnessed 36.7 percent growth in coal movement through FMC projects against 15 mt in the same period last fiscal.

Plans are on anvil to commission 19 FMC projects of nearly 150 mt per year capacity during FY26. “We expect to transport an estimated incremental quantity of 20 mt through FMC projects in the ongoing financial year,” said a senior official of Coal India.

The increased loading through first-mile connectivity saw under-loading charges dropping by 5 per cent in FY25 compared to FY24. The grade conformity has increased due to quality coal getting loaded and transported in mechanised manner through FMC projects.

In a phased manner, CIL has plans to commission 92 FMC projects of 994 mt/year capacity by FY29-end. With the company aiming at 1 billion tonne coal production by FY29, the capacity is being built up to enable the transport of almost the entire quantity in an environment-friendly manner.

What is FMC?

According to Coal India, the FMC initiative is an automated coal evacuation process which ensures eco-friendly coal transportation from pithead, in piped conveyor belts, to loading points. Key features of FMC involve constructing mechanised coal handling plants equipped with coal crushers where coal is sized, and rapid loading systems where a precise quantity of quality coal is loaded into wagons avoiding over or under loading.

FMC replaces truck-based transportation to Railway sidings and avoids manual loading through pay loaders. This leads to reduced dust, noise and vehicular emissions, minimized road congestion and improved safety. Wagon turnaround time will also be lower.

CIL has conducted a pilot study through professional agencies to assess potential environmental and economic advantages of loading through FMC projects. The results reflected sizable reduction in carbon emissions, air pollutants, ambient noise levels and significant savings in diesel costs.

“For instance, in case of Gevra (mine of Coal India subsidiary South Eastern Coalfield), a 10 mt FMC project, there was a reduction of around 84 per cent particulate matter and other gaseous emissions compared to pay loader loading at sidings,” Coal India said.

“FMC projects are a win-win situation for CIL, its customers and railways” the Coal India official added.

Published on June 5, 2025