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Coal India identifies additional First Mile Connectivity Projects

Published: Jul 24, 2024

By TIOLCorplaws News Service

NEW DELHI, JULY 24, 2024: BEFORE August, 2019, Coal India Limited (CIL) had established 20 First Mile Connectivity (FMC) projects of 151 MTY capacity. Since, August, 2019, CIL has identified additional 72 First Mile Connectivity (FMC) projects of 837.5 MTY Capacity. Out of these 72 projects, 15 projects of 200.5 MTY have been commissioned. Thus, as on date, total 35 FMC projects have been commissioned and are functional.

The total estimated cost of 72 FMC projects identified by CIL is about Rs. 27,750 Crores. This expenditure will be met by CIL from its own resources.

Ministry of Coal administers three Central Sector Schemes namely (i) Exploration of Coal and Lignite, (ii) Research & Development and (iii) Conservation, Safety and Infrastructural Development in Coal Mines. Details of these schemes are as under: -

Sl. No.

Name of Scheme

Purpose of scheme

Budget allocation in FY 2024-25

(Rs. In crore)

1

Exploration of Coal and Lignite

To delineate, estimate and evaluate coal/lignite resources of India by preparation of geological reports (GRs). These reports are utilised for the new coal blocks to be put for auction/allocation.

730.00

2

Research & Development

To plan, program, budget the new & ongoing research projects and oversee the implementations of research projects.

21.00

3

Conservation, Safety and Infrastructural Development in Coal Mines

To ensure conservation of coal and safety in coal mines by way of sand stowing, protective works and development of transport infrastructure.

92.50

In addition to above, Government has launched a Scheme with financial outlay of Rs 8500 crore to grant viability gap funding (VGF) to promote Coal/Lignite Gasification Projects for both PSUs and the private sector. The approved scheme covers projects under following three categories -

Category I, with a provision of Rs 4050 crores, is for Government PSUs. They can submit proposals for funding assistance, and three selected projects will receive a maximum grant of Rs 1350 crores or 15% of project cost, whichever is lower as VGF.

Category II, with Rs 3850 crores, is available to both private sector and government PSUs with a maximum grant of Rs. 1000 cr or 15% of project cost, whichever is lower as VGF.

Category III, with Rs 600 crores for demonstration or small-scale projects with maximum outlay per project of Rs. 100 cr or 15% of project cost, whichever is lower as VGF.

This information was given by Union Minister of Coal and Mines G. Kishan Reddy in a written reply in Rajya Sabha yesterday.

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