Coal India is relying on mechanised transportation to cut down on the movement of the dry fuel from pitheads to dispatch points, curb pollution and reduce pilferage.

The public sector miner has issued tenders for 35 mining projects across six subsidiaries for mechanised transportation and the setting up of coal handling plants and silos for rapid loading at an estimated cost of Rs 12,500 crore. The amount will be spent as part of the company’s own capital expenditure.

At present, Coal India (CIL) spends around Rs 3,400 crore on transportation that can be brought down substantially through mechanised movement between pitheads and dispatch points.

The miner estimates an internal rate of return of more than 12 per cent once the mechanisation takes shape by 2023-24.

At present, mechanised conveyor system and computerised loading of coal is operational in CIL’s 19 projects with a combined capacity of 151 million tonnes per year. With the commissioning of the 35 projects, this would go up to 557mt per year.

Under mechanised transportation, coal would be moved through piped conveyor belts. With reduced movement of coal laden trucks on road, this would bring down dust pollution and benefit individuals living in the proximity of mines.

CIL is undertaking a study along with the National Environmental Engineering Institute, Calcutta, to assess the environmental benefits of these projects. Further, with reduced manual intervention, precise pre-weighted quantities of coal can be loaded.

“Improved loading time will bring down wagon idling, thus increasing their availability. Easing the load on road networks induces savings on diesel along with positive environmental considerations,” said a senior executive of the company.

Of the 35 projects, South Eastern Coalfields, Mahanadi Coalfields and Northern Coalfields account for nine projects each.