Coal India Limited (CIL), in a move aimed at improving the quality of its coking coal, will be setting up eight new coking coal washeries at an estimated capital outlay of Rs. 3,300 Crores. Expected to be operational by FY 2030, these would have a combined washing capacity of 21.5 Million Tonnes per Year (MT/Y).
The upcoming coking coal washeries are in addition to the ten that CIL already operates, having 18.35 MT/Y cumulative capacity. The Mahartana coal miner would also be investing Rs. 300 crore in renovation and modernization of the existing coking coal washeries to ensure their optimal and gainful utilization.
Of the eight new washeries, five will be set up in Central Coalfields Limited (14.5 MT/Y) and three in Bharat Coking Coal Limited (7 MT/Y).
This calibrated expansion of washing capacity and modernization is to improve domestic coking coal quality, and is also an effort to moderate import dependence in the coming years.
Having monetized one coking coal washery in Bharat Coking Coal Limited a year ago, plans are in the pipeline to monetize three older, non-operative coking coal washeries, aligning with the National Monetization Policy. CIL is also renovating and modernizing two aging coking coal washeries to improve their throughput, recovery efficiency, and process reliability.
In a public-private collaboration model, CIL is leveraging washing capacity and technical expertise from TATA Steel Limited to enhance the supply of quality coking coal to the domestic steel sector.
Coking coal is a vital ingredient in steelmaking. Though India is well endowed with coal reserves, inherently, domestic coking coal resources are scarce. Compounding this, the ash content ranges from 25% to 45%, much higher than in other countries globally, making the import necessary.
The synergy of these efforts results in the substitution of imported coking coal, a reduction in forex outgo, and increased industrial competitiveness.
