Coal India Limited (CIL) announced on March 27 that it will invest 3,300 crore to establish eight new coking coal washeries as part of a broader strategy to enhance domestic coal quality and reduce import dependence, according to a press statement.
The state-run miner plans to make these washeries operational by FY30, adding a combined washing capacity of 21.5 million tonnes per year (MT/Y). These new facilities will supplement CIL's existing 10 washeries, which have a cumulative capacity of 18.35 MT/Y. Among the upcoming units, five will be located under Central Coalfields Limited with a capacity of 14.5 MT/Y, and three will be developed under Bharat Coking Coal Limited with a capacity of 7 MT/Y.
In addition to capacity expansion, CIL will invest another 300 crore to renovate and modernize existing washeries, aiming to improve efficiency and utilization.
CIL stated that this move is intended to address quality challenges in domestic coking coal, which typically has a high ash content ranging from 25% to 45%, making it less suitable for steelmaking without processing. The initiative is part of a well-planned strategy to reduce reliance on imported coking coal, which remains crucial for India's steel industry. Improved washing capacity is expected to enhance recovery efficiency and ensure a better quality coal supply for domestic steel producers.
The company is also exploring the monetization of older, non-operational washeries in line with the National Monetisation Policy. It plans to leverage public-private partnerships, including collaboration with Tata Steel, to augment washing capacity and technical capabilities.
As a key raw material for steel production, the expansion is expected to help lower foreign exchange outgo and boost the competitiveness of the domestic industry, the state-owned miner said.
