New Delhi, March 27: Coal India announced on Friday that it will invest approximately ₹3,300 crore to establish eight new coking coal washeries. This initiative aims to enhance coal quality and reduce dependence on imports of high-quality coking coal used in steel production.
The total capacity of the new washeries will be 21.5 million tons per year (MTPY), with a target to operationalize them by 2029-30. Currently, Coal India operates a network of 10 washeries with a combined capacity of 18.35 MTPY, meaning this expansion will more than double its capacity in the next four years.
Coking coal washeries are facilities that improve the quality of raw coking coal by removing impurities such as ash, stone, and soil, thus producing high-quality coal suitable for the steel industry.
The company also plans to invest around ₹300 crore in modernizing and renovating its existing coking coal washeries to enhance their efficiency and utility.
Of the eight new washeries, five, with a total capacity of 14.5 MTPY, will be established under Central Coalfields Limited, while three washeries with a capacity of 7 MTPY will be developed under Bharat Coking Coal Limited.
Additionally, the company is monetizing its old assets under the National Monetization Pipeline. After monetizing one washery of Bharat Coking Coal Limited, it plans to include three more closed units in this process.
Coal India is also working on the renovation and modernization of two old washeries to improve their production capacity, recovery efficiency, and process reliability.
Furthermore, Coal India is collaborating with the major private player Tata Steel to better utilize washing capacity and technical expertise, ensuring the domestic steel sector has access to high-quality coking coal.
Coking coal is a crucial raw material for steel production, but the coal available in India contains ash content ranging from 25% to 45%, affecting its quality. This is why the country has to rely on expensive imports, putting pressure on foreign exchange reserves.
Coal India stated that these initiatives will reduce dependence on imported coking coal, save foreign currency, and strengthen the competitiveness of the country’s industrial sector.
Arpit Soni has had a passion for journalism since the beginning. Now he has turned this hobby into his profession. Arpit, who is a resident of Udaipur, enjoys editing and writing news related to journalism. He has worked as a Senior Content Producer in several important roles at Bhaskar, Patrika, Pratahkal, Punjab Kesari, and Times. Arpit completed his schooling in Udaipur and Jaipur. He has been working in the media industry for more than 10 years, and his journey is still continuing. ✍️📚
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