Coal India Ltd (CIL) plans to set up eight new coking coal washeries at an estimated capital outlay of ₹3,300 crore to enhance the quality of its output and reduce import dependence.
The washeries, with a combined capacity of 21.5 million tonnes per year (MTY), are expected to be operational by FY30, augmenting the company’s existing network of 10 washeries with a cumulative capacity of 18.35 MTY.
Capacity expansion plan
Of the eight upcoming washeries, five with a capacity of 14.5 MTY will be set up under Central Coalfields Ltd, while three with 7 MTY capacity will be developed under Bharat Coking Coal Ltd.
The expansion is aimed at improving the availability of washed coking coal for domestic steel producers.
Modernisation of existing assets
In addition to capacity addition, CIL will invest ₹300 crore in the renovation and modernisation of its existing washeries to improve utilisation and operational efficiency.
The company is also upgrading two ageing washeries to enhance throughput, recovery efficiency and process reliability.
Reducing import dependence
The initiative is part of a broader strategy to improve domestic coking coal quality, which typically has high ash content ranging between 25% and 45%, necessitating imports.
By expanding washing capacity, CIL aims to reduce reliance on imported coking coal and lower foreign exchange outgo.
Monetisation and partnerships
Following the monetisation of one coking coal washery in Bharat Coking Coal last year, the company plans to monetise three additional non-operational washeries in line with the National Monetisation Policy.
CIL is also leveraging a public-private collaboration model, working with Tata Steel to utilise technical expertise and enhance the supply of quality coking coal to the domestic steel industry.
Strategic importance
Coking coal is a critical raw material for steel production, and improving its domestic availability is key to strengthening India’s industrial competitiveness.
The combined efforts in capacity expansion, modernisation and partnerships are expected to support import substitution and improve efficiency across the value chain.