Coal India Announces ₹3300 Crore Investment in Coking Coal Washeries
Kolkata – Coal India Limited (CIL) announced plans to establish eight new coking coal washeries with a combined washing capacity of 21.5 Million Tonnes per Year (MT/Y). The project represents a capital outlay of ₹3300 crores.The new washeries, slated to be operational by Fiscal Year 2030, complement CIL’s existing ten washeries, which currently possess a cumulative capacity of 18.35 MT/Y.
In addition to the new construction, CIL will invest ₹300 crores in the renovation and modernization of its existing coking coal washeries. Five of the new washeries will be located within Central Coalfields Limited (14.5 MT/Y), while three will be situated in Bharat Coking Coal Limited (7 MT/Y).
The expansion aims to enhance the quality of domestic coking coal and reduce reliance on imports. CIL intends to monetize three older, non-operative coking coal washeries in alignment with the National Monetization Policy, following a prior monetization of one washery in Bharat Coking Coal Limited.
Furthermore, CIL is modernizing two aging coking coal washeries to boost throughput, recovery efficiency, and process reliability. The company is also collaborating with TATA Steel Limited through a public-private partnership to leverage washing capacity and technical expertise for the domestic steel sector.
Coking coal is a crucial component in steel production. While India possesses significant coal reserves, domestic coking coal resources are limited and characterized by a higher ash content, typically ranging from 25% to 45%, necessitating imports. These initiatives are expected to substitute imported coking coal, decrease foreign exchange expenditures, and improve industrial competitiveness.
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