New Delhi: Coal India Limited (CIL) has announced a capital investment of Rs 3,300 crore to set up eight new coking coal washeries, aimed at improving the quality of domestic coking coal and reducing dependence on imports.
According to a company statement issued on March 27, the upcoming washeries are expected to be operational by FY2030 and will have a combined washing capacity of 21.5 million tonnes per year (MT/Y). The new facilities will supplement the PSU’s existing 10 washeries, which currently have a cumulative capacity of 18.35 MT/Y.
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As part of its expansion and efficiency drive, CIL will also invest an additional Rs 300 crore towards the renovation and modernisation of existing coking coal washeries to enhance operational performance and utilisation.
Out of the eight new washeries, five with a total capacity of 14.5 MT/Y will be set up under Central Coalfields Limited, while the remaining three, with a capacity of 7 MT/Y, will come up under Bharat Coking Coal Limited.
The initiative is part of a broader strategy to improve the quality of domestically produced coking coal, which typically has higher ash content compared to global benchmarks. By enhancing washing capacity and efficiency, the company aims to reduce import dependence and support the domestic steel industry.
CIL is also exploring monetisation of three older, non-operational coking coal washeries in line with the government’s asset monetisation strategy. This follows the successful monetisation of one such facility in Bharat Coking Coal Limited last year.
Additionally, the company is leveraging public-private collaboration to enhance output and quality. It is working with Tata Steel Limited to utilise washing capacity and technical expertise for improving the supply of quality coking coal to the domestic steel sector.
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Coking coal is a critical raw material in steel manufacturing. Despite India’s large coal reserves, domestic availability of high-quality coking coal remains limited, necessitating imports. CIL’s planned investments are expected to help substitute imports, reduce foreign exchange outgo, and improve the competitiveness of the domestic steel industry.
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