Coal India Limited (CIL) announced a capital outlay of ₹3,300 Crores to establish eight new coking coal washeries, aiming for operational status by FY 2030. These facilities will add 21.5 Million Tonnes per Year (MT/Y) capacity, supplementing the existing 18.35 MT/Y. The move is intended to enhance domestic coking coal quality and reduce reliance on imports, which are currently necessitated by high ash content in domestic reserves.
Strategic Expansion in Coking Coal Processing
Coal India Limited (CIL) has committed a capital expenditure of Rs. 3,300 Crores toward a significant expansion drive focused on improving the quality of its coking coal supply. This initiative involves setting up eight new coking coal washeries across its subsidiaries. These new units are projected to be operational by FY 2030 and will collectively contribute an additional washing capacity of 21.5 Million Tonnes per Year (MT/Y).
Adding Capacity and Modernization
This expansion is in addition to the ten washeries that CIL currently operates, which possess a cumulative capacity of 18.35 MT/Y. Furthermore, the Maharatna company will invest Rs. 300 crore in the renovation and modernization of existing coking coal washeries to ensure optimal performance and utilization.
The breakdown of the new facilities is as follows:
- Central Coalfields Limited (CCL): Five washeries, adding 14.5 MT/Y.
- Bharat Coking Coal Limited (BCCL): Three washeries, adding 7 MT/Y.
Goal: Reducing Import Dependence
This calibrated expansion and modernization effort is primarily aimed at significantly improving the quality of domestic coking coal and moderating the nation’s dependence on imported supplies in the coming years. Coking coal is a vital ingredient for steel making, and domestic reserves often suffer from high ash content, ranging from 25% to 45%, which mandates imports.
Asset Monetization and Collaboration
In alignment with the National Monetization Policy, CIL is actively moving to monetize non-core assets. Following the monetization of one washery last year, plans are underway to monetize three older, non-operative coking coal washeries. Simultaneously, CIL is renovating two aging facilities to boost their throughput and recovery efficiency.
In a strategic move leveraging external expertise, CIL is also engaged in a public-private collaboration model with TATA Steel Limited to utilize their washing capacity and technical expertise to secure a better supply of quality coking coal for the domestic steel sector. The overall synergy of these efforts is expected to result in the substitution of imported coking coal, leading to reduced foreign exchange outflow and increased industrial competitiveness.
Source: BSE
