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CIL issues tenders for transporting 406 million tonne coal

Tuesday, 17 Nov 2020

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Coal India (CIL) has issued 35 tenders for transportation of coal from its mine pitheads to despatch points. The estimated investment is expected to be around Rs 12,500 crore.

The handling capacity of these 35 projects will be 406 million tpa. Each of these mining projects have production capacity of four million tpa and above. The expenditure will be met out of the company's capital expenditure.

Coal Handling Plants (CHPs) and Silos for rapid loading system will also be commissioned across six of its subsidiaries, under the tenders. These will have additional facilities of crushing and sizing of coal and speedy computerised loading.

Another upside is that with the reduced manual intervention, precise pre-weighed quantity of coal can be loaded. It also spurs loading of better quality coal.

Under mechanised transportation, coal will be moved through piped conveyor belt mode promoting cleaner environment.

With reduced movement of coal laden trucks on roads it brings down dust pollution to the comfort of people residing in the proximity of the mines.

Currently, CIL spends around Rs 3,400 crore on coal transportation costs. This cost will come down with the introduction of mechanised coal transport in the first mile. CIL is expecting close to 12 percent internal rate of return after switches over to the mechanised transport means.

Mechanised conveyor system and computerised loading is operational in 19 projects of CIL having 151 million tpa capacity. With the new 35 projects, the capacity will increase to 557 million tpa by 2023-24.