Coal India has announced a plan to invest approximately Rs 3,300 crore in setting up eight new coking coal washeries. These washeries aim to enhance coal quality and reduce the need for importing high-quality coking coal crucial for steel production. The new facilities, with a combined capacity of 21.5 million tonnes per year, are expected to be operational by 2029-30.
The current network of Coal India comprises ten washeries with a total capacity of 18.35 million tonnes per year. The upcoming expansion will more than double this capacity within the next four years. Additionally, the company intends to allocate around Rs 300 crore for the refurbishment and modernization of its existing coking coal washeries to enhance efficiency and utilization.
Among the eight new washeries, five with a capacity of 14.5 million tonnes per year will be established under Central Coalfields Limited, while three with a capacity of 7 million tonnes per year will be developed under Bharat Coking Coal Limited. Furthermore, Coal India is in the process of monetizing older assets as part of the National Monetisation Pipeline, with plans to monetize additional non-operational units after the successful monetization of one coking coal washery.
Coal India is also focusing on the renovation and modernization of two aging washeries to improve throughput, recovery efficiency, and process reliability. Collaborating with Tata Steel, a private sector leader, Coal India aims to leverage washing capacity and technical expertise to enhance the supply of quality coking coal to the domestic steel sector.
Coking coal plays a vital role in steel production, but domestic reserves in India have high ash content, necessitating costly imports. By implementing these initiatives, Coal India anticipates reducing the reliance on imported coking coal, cutting foreign exchange expenditure, and boosting industrial competitiveness.
