New Delhi: Coal India Limited has announced a major capital investment of ₹3,300 crore to establish eight new coking coal washeries, as part of its strategy to improve domestic coal quality, enhance washing capacity and reduce India’s dependence on imported coking coal.
According to the company, the new washeries are expected to become operational by FY2030 and will together add 21.5 million tonnes per year (MT/Y) of coal washing capacity.
New washeries to significantly expand existing washing capacity
At present, Coal India operates 10 coking coal washeries with a cumulative capacity of 18.35 million tonnes per year.
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With the addition of the new units, the company’s total washing capacity will rise substantially, strengthening supply quality for domestic industrial consumers, especially the steel sector.
Five washeries under CCL, three under BCCL
Of the eight new washeries:
- Five washeries with 14.5 MT/Y capacity will be developed under Central Coalfields Limited
- Three washeries with 7 MT/Y capacity will come under Bharat Coking Coal Limited
These projects are part of Coal India’s long-term production and beneficiation strategy.
₹300 crore additional investment for modernisation of existing washeries
Apart from the new projects, Coal India will invest an additional ₹300 crore for renovation and modernisation of existing washeries.
The goal is to:
- improve plant efficiency
- raise utilisation levels
- enhance washing quality
- extend asset life
Focus on reducing ash content in domestic coking coal
Domestic coking coal generally contains higher ash content compared with international standards, making washing critical before industrial use.
Coal India’s expanded washing infrastructure is intended to improve the quality of domestic supply and reduce reliance on imported premium-grade coking coal.
Move expected to support domestic steel industry
Coking coal remains a key raw material for steel manufacturing.
India has substantial coal reserves, but high-quality domestic coking coal remains limited, forcing large-scale imports.
By improving washed coal output, Coal India aims to:
- support domestic steel producers
- reduce foreign exchange outgo
- improve competitiveness of Indian steel manufacturing
Old non-operational washeries may be monetised
Coal India is also exploring monetisation of three older non-operational coking coal washeries under the government’s asset monetisation framework.
This follows the successful monetisation of one such unit under Bharat Coking Coal Limited last year.
Collaboration with Tata Steel to improve washed coal supply
The company is also working with Tata Steel Limited to utilise technical expertise and washing capacity through public-private collaboration.
The partnership is aimed at increasing the supply of quality coking coal to the domestic steel industry.
Part of broader energy and industrial strategy
The investment reflects Coal India’s broader plan to strengthen value addition in coal production and align with India’s industrial self-reliance goals.
The expansion is expected to play a significant role in reducing import dependence over the coming years.
About Coal India Limited (CIL)
Coal India Limited (CIL) is a Maharatna Central Public Sector Enterprise under the Ministry of Coal, Government of India. Headquartered in Kolkata, CIL is the world’s largest coal producer and plays a critical role in meeting India’s energy demands. In recent years, the company has been actively diversifying into renewable energy, including solar power, as part of its long-term sustainability and Net-Zero roadmap.
