Coal India Boosts Coking Coal Production with Major Investment

Coal India to Invest ₹3,300 Crore in New Coking Coal Washeries​

Expansion Plans and Capacity Boost​

New Delhi, March 27 – Coal India announced plans to invest approximately ₹3,300 crore to establish eight new coking coal washeries. This initiative is part of a strategy to enhance coal quality and lessen reliance on imported high-quality coking coal vital for steel production.
The eight new facilities, slated for completion by 2029-30, will deliver a combined capacity of 21.5 million tonnes per year (MT). Currently, Coal India operates ten washeries with a total capacity of 18.35 MTY. This expansion represents more than doubling the existing capacity within the next four years.

Renovation and Modernization​

Alongside the new facilities, Coal India will invest approximately ₹300 crore in renovating and modernizing its existing coking coal washeries. This focus aims to improve operational efficiency and utilization rates. The company also plans to renovate two ageing washeries to improve throughput, recovery efficiency, and process reliability.

Asset Monetization​

Coal India is also pursuing the monetization of older assets, aligning with the National Monetisation Pipeline. Following the successful monetization of one coking coal washery under Bharat Coking Coal, the company intends to monetize three additional non-operational units.

Strategic Collaboration​

Coal India is collaborating with Tata Steel to utilize washing capacity and technical expertise, bolstering the supply of quality coking coal to the domestic steel sector. Coking coal is a critical raw material for steelmaking; however, domestic reserves often exhibit a high ash content, ranging from 25 per cent to 45 per cent, necessitating costly imports and impacting foreign exchange reserves.
Coal India anticipates that these combined initiatives will contribute to substituting imported coking coal, reducing foreign exchange expenditures, and elevating industrial competitiveness.