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 ₹3,300 crore. 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, which have an 18.35 MT/Y cumulative capacity. The Maharatna coal miner will also invest ₹300 crore in the renovation and modernisation of the existing coking coal washeries to ensure their optimal and gainful utilisation.
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 modernisation is aimed at improving domestic coking coal quality and is also an effort to moderate import dependence in the coming years.
Having monetised one coking coal washery in Bharat Coking Coal Limited a year ago, plans are in the pipeline to monetise three older, non-operative coking coal washeries, aligning with the National Monetisation Policy. CIL is also renovating and modernising two ageing 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 steel making. Though India is well endowed with coal reserves, domestic coking coal resources are inherently scarce. Compounding this, the ash content ranges from 25% to 45%, much higher than in other countries globally, making imports necessary.
The synergy of these efforts results in the substitution of imported coking coal, reduction in forex outgo, and increased industrial competitiveness.
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).