Coal India Reports Sharp Rise in Green Coal Transport in FY25

Coal India Limited (CIL) reported a 34% year-on-year growth in environment-friendly coal transportation via First Mile Connectivity (FMC) projects in FY 2025. The company transported 102.5 million tonnes (MTs) of coal using 20 FMC projects integrated with the Indian Railways, up from 76.5 MTs moved through 17 projects in FY 2024.

In the current financial year up to May, coal movement through FMC projects rose by 36.7% compared to the same period last year, when it stood at 15 MTs.

A senior CIL official stated, “We expect to transport an estimated incremental quantity of 20 MTs through FMC projects in the ongoing financial year.”

Upcoming Expansion Plans

CIL plans to commission 19 additional FMC projects in FY 2026, adding a cumulative capacity of nearly 150 MT per year. The company’s long-term vision involves setting up 92 FMC projects with a total capacity of 994 MT annually by the end of FY 2029. These efforts are aligned with CIL’s target of achieving 1 billion tonnes of coal production by FY 2029, with nearly the entire volume expected to be transported via eco-friendly FMC methods.

Efficiency and Environmental Benefits

The expansion of FMC projects has resulted in operational benefits. Under-loading charges dropped by 5% in FY 2025 compared to the previous year, thanks to more precise loading systems. Grade conformity of coal also improved, as the mechanised process ensures better quality control.

FMC involves the automated movement of coal from pitheads to loading points through piped conveyor belts and mechanised coal handling plants. These systems include coal crushers and rapid loading mechanisms that minimise dust, noise, and emissions while also improving road safety and wagon turnaround times.

A pilot study at Gevra, a 10 MT capacity FMC project, showed an 84% reduction in particulate and gaseous emissions compared to traditional pay loader loading.

New MoU to Enhance Rail Infrastructure

In a separate update, CIL signed a non-binding Memorandum of Understanding (MoU) with Indian Port Rail & Ropeway Corporation Limited on June 5, 2025. The agreement aims to develop rail infrastructure across CIL and its subsidiaries, enhancing connectivity and capacity.

Coal India Share Price Performance

On June 5, 2025, Coal India share price opened at ₹394.60 and closed at ₹395.10, up by 0.13%. The stock price touched its day’s low at ₹392.55.

Also Read: Coal India to File Draft Papers for 2 Subsidiaries’ IPO Soon!

Conclusion

Coal India’s aggressive push towards expanding FMC projects is transforming the coal transportation landscape in India.

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