India’s largest coal producer, Coal India Limited (CIL), is stepping up efforts to improve the quality of domestic coking coal with a major investment plan worth ₹3,300 crore. The company will set up eight new coking coal washeries, a move aimed at strengthening India’s steel ecosystem while gradually reducing dependence on imported coal.
These new washeries, expected to be operational by FY 2030, will together add a washing capacity of 21.5 million tonnes per year. This expansion will significantly enhance Coal India’s ability to supply higher-grade coking coal, which is a critical raw material in steel production. At present, CIL operates ten washeries with a combined capacity of 18.35 MT/Y, and the new additions will take its overall processing capability to a much stronger level.
The expansion has been strategically planned across key subsidiaries. Five of the washeries will come up under Central Coalfields Limited, contributing 14.5 MT/Y capacity, while the remaining three, with a capacity of 7 MT/Y, will be developed under Bharat Coking Coal Limited. This distribution is expected to optimise logistics and improve supply efficiency in coal-bearing regions.
Alongside expansion, Coal India is also focusing on improving the performance of its existing infrastructure. The company has earmarked ₹300 crore for the renovation and modernisation of its current washeries. This upgrade initiative is designed to enhance throughput, improve recovery efficiency, and ensure more reliable operations. Two ageing washeries are already undergoing improvements as part of this broader effort.
In parallel, CIL is aligning with the government’s National Monetization Policy by planning to monetise three older and non-operational washeries. This follows the successful monetisation of one such facility under Bharat Coking Coal Limited last year. The approach reflects a broader strategy to unlock value from idle assets while inviting private sector participation.
Coal India is also leveraging collaboration to strengthen its capabilities. Through a public-private partnership with Tata Steel Limited, the company is tapping into advanced coal washing technology and operational expertise. This partnership is expected to play a key role in improving the supply of high-quality coking coal to domestic steel producers.
The need for such initiatives is rooted in India’s coal profile. While the country has abundant coal reserves, high-quality coking coal remains limited. Domestic coal typically contains ash levels ranging from 25% to 45%, significantly higher than global standards, making imports unavoidable for steelmakers.
By expanding washing capacity and modernising its infrastructure, Coal India is aiming to narrow this quality gap. The long-term impact of these efforts is expected to reduce import dependence, lower foreign exchange outflow, and improve the competitiveness of India’s steel industry.