Lok Sabha Question No. 4472 (UNSTARRED), answered on 2025-08-20
Subject: First Mile Connectivity  Projects in Coal Transportation
Ministry: COAL
Asked by: Shri Khagen Murmu, Smt. Kamlesh Jangde, Shri Manoj Tiwari

## 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 (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 |

(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 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 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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