The selected bidders will have to set up coal coal handling plants (CHPs) and silos for rapid loading

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The coal is planned to be moved through piped conveyor belt mode. (Credit: Анатолий Стафичук from Pixabay)

State-owned Coal India (CIL) has issued tenders for 35 mining projects seeking potential bidders for the mechanised transportation of coal to delivery points.

The selected bidders for the mechanised transportation of dry fuel tender will have to set up coal coal handling plants (CHPs) and silos for rapid loading, which will involve an estimated investment of INR125bn ($1.6bn).

By 2024, the CHPs and silos will be commissioned across six of CIL’s subsidiaries to promote a cleaner environment and reduce transportation costs, reported Press Trust of India.

As part of the mechanised transportation, the firms will move the coal through piped conveyor belt mode.

CIL was quoted by the news agency as saying in a statement: “Coal India’s pitch for efficient and environment friendly mechanised coal transportation in its first-mile connectivity, replacing the road movement, gained pace with the company successfully issuing tenders for all the 35 projects, of phase-1, by September 2020 as planned.”

Handling capacity of 35 projects will be 406MTPA

The handling capacity of the 35 projects identified for mechanised transportation of dry fuel will be 406 million tonnes per year (MTPA) while each of the mining projects is estimated to have a production capacity of at least 4MTPA.

Through National Environmental Engineering Institute (NEERI), Kolkata, CIL has already commenced a study to measure environmental benefits of the projects.

CIL was quoted by Business Standard as saying in a statement: “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.”

In September this year, CIL launched a global tender to the country’s first coal to methanol (C2M) plant in West Bengal, with an investment of INR60bn ($813.1m).