IGI Logo

Coal India announced on Friday that it plans to invest around Rs 3,300 crore to set up 8 new coking coal washeries as part of its strategy to improve the quality of coal and reduce the country’s dependence on imports of high-quality coking coal that is used in the production of steel.

The new washeries, which are expected to add a combined capacity of 21.5 million tonnes per year (MTY), are scheduled to become operational by 2029-30. Coal India currently has a network of 10 washeries with a cumulative capacity of 18.35 MTY, which means the expansion will more than double the capacity in the next four years.

The public sector mining giant also plans to invest around Rs 300 crore in the renovation and modernisation of its existing coking coal washeries to improve efficiency and utilisation.

Of the eight new facilities, five with a total capacity of 14.5 MTY will be set up under Central Coalfields Limited, while three with 7 MTY capacity will come up under Bharat Coking Coal Limited.

Coal India is also monetising older assets in line with the National Monetisation Pipeline. After monetising one coking coal washery at Bharat Coking Coal, it plans to monetise three more non-operational units.

Besides, Coal India is undertaking renovation and modernisation of two ageing washeries to improve throughput, recovery efficiency and process reliability.

Coal India is also collaborating with private sector major Tata Steel to leverage washing capacity and technical expertise to boost the supply of quality coking coal to the domestic steel sector.

Coking coal is a key raw material in steelmaking. However, domestic reserves have a very high ash content, which ranges from 25 per cent to 45 per cent, forcing the country to take recourse to expensive imports, which are also a drain on precious foreign exchange.

Coal India said the combined initiatives are expected to help substitute imported coking coal, reduce foreign exchange outgo and enhance industrial competitiveness.