FMC plans to accelerate the extraction of coal from mines

In accordance with the government’s coal logistics policy, the coal ministry has announced several first-mile connectivity (FMC) projects.

FMC refers to coal transportation from pitheads to dispatch points, from which it is transported to consumers.
To replace road transport, coal producers use alternative transport methods such as mechanized conveyor systems and computerized loading onto railway rakes under FMC.
Manual intervention and loading time are reduced in FMC projects.
It also speeds up the evacuation or movement of coal from pitheads.

The policy aims to create a “technologically enabled, integrated, cost-efficient, resilient, sustainable, and trusted logistics ecosystem in the country for accelerated and inclusive growth,” according to the draught.
Optimal infrastructure: In other words, it seeks to build an optimal infrastructure for coal transportation at the origin and destination points to allow for faster transportation.
It also aims to create an eco-friendly, multi-modal integrated national coal evacuation infrastructure.
Dedicated corridors: The other goal is to create smart coal logistics corridors to ensure complete oversight from the mine to the point of consumption.
Why is the government putting so much emphasis on FMC?
There are several gaps in the coal supply chain that will now be filled through planned projects.
FMC is part of the government’s plans to achieve energy security and reduce reliance on imports.
FMC would also reduce carbon emissions by reducing reliance on road transport for coal evacuation.

Artificial scarcity: Last year, India experienced a power crisis due to a coal shortage.
Lack of railway rakes: In addition to the scarcity of domestic coal, the lack of railway rakes exacerbated the crisis. Following that, the government made an effort to increase the availability of rakes.
Given that power demand is expected to rise in tandem with economic growth, a robust coal logistics ecosystem has become critical.
Last-mile energy connectivity: In addition to first-mile connectivity, India is eager to improve last-mile connectivity.

The establishment of FMC would be included in the mine allocation process under the draught policy. As a result, more projects of this type are on the horizon.
The coal ministry has approved an additional 19 FMC projects for Coal India and Singareni Collieries, totaling 330 million tonnes per year (MTPA).
These projects will be completed by fiscal year 27.

Source: https://coal.nic.in/sites/default/files/2022-05/31-05-2022a-wn.pdf