In a bid to ensure the eco-friendly transfer of coal from its production point to handling plants, Coal India Ltd (CIL) on Tuesday (September 12) said the company is planning to invest Rs 24,000 crore in three phases.

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The phases will cover 61 First Mile Connectivity (FMC) projects which will have a combined capacity of 763.5 million tonne per annum. Under these green projects, coal will be loaded directly into rail wagons through mechanised piped conveyors with a rapid loading system.

"It is essential that coal transportation is environment friendly to improve the quality of life of people living in the proximity of coalfield areas. FMC projects offer benefits like suppression of dust pollution and carbon emissions.

They also reduce the load on road transportation leading to safety. Other benefits include precise quantity and quality coal is loaded for consumers with minimal manual intervention," Coal India said in a statement.

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The government-owned company is looking to establish 35 FMC projects under the first phase with an investment of Rs 10,750 crore. Of the total 414.5 MTPA planned under this phase, 8 projects of 112 MTPA capacity are already operational.

By the end of FY24, 17 more projects of 178 MTPA are expected to come up. The remaining 10 FMC projects of 124.5 MTPA capacity are likely to be operative by FY25.

The second phase, meanwhile, will see 9 projects with 57 MTPA capacity and an investment of Rs 2,500 crore. Five of these projects, of 21.5 MTPA capacity, are under construction and are expected to be commissioned by FY25. The remaining ones are in various stages of development with tenders issued for a few and bid documents being prepared for the others.

It is the third and final phase that will receive the highest investment, of Rs 11,500 crore for its 17 projects. While tenders have been floated for 3 projects of 65 MTPA capacity, the entire phase is expected to be commissioned by FY29.

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Only coal mines with a production capacity of 4 MTPA will be covered by the first phase. Eventually, the ambit will be expanded to include 2 MTPA capacity mines in the second and third phases. The company says that by FY29, as all 61 projects become operational, total eco-friendly coal evacuation would go up to 914.5 MTPA.

Shares of Coal India Ltd ended at Rs 270.75, down by Rs 8.20, or 2.94 percent on the BSE.