New Delhi, March 27: Coal India Limited on Friday announced plans to invest around ₹3,300 crore to set up eight new coking coal washeries, as part of its strategy to enhance coal quality and reduce reliance on imports critical for steel production.
The proposed washeries, with a combined capacity of 21.5 million tonnes per year (MTY), are targeted for commissioning by FY30. The expansion will more than double Coal India’s current washing capacity of 18.35 MTY across 10 existing facilities, marking a significant scale-up in beneficiation infrastructure.
In addition, the company has earmarked ₹300 crore for renovation and modernisation of existing washeries to improve operational efficiency, recovery rates, and throughput.
Of the planned facilities, five units with a total capacity of 14.5 MTY will be developed under Central Coalfields Limited, while three units with 7 MTY capacity will be set up under Bharat Coking Coal Limited.
Coal India is also advancing asset monetisation under the National Monetisation Pipeline, with plans to monetise additional non-operational washeries following an earlier transaction.
The company is collaborating with Tata Steel to leverage washing capacity and technical expertise, aimed at strengthening the domestic supply of high-grade coking coal.
Coking coal remains a critical input for steelmaking; however, high ash content in domestic reserves—ranging between 25% and 45%—has historically necessitated imports. Coal India expects these initiatives to reduce import dependence, lower foreign exchange outflows, and improve competitiveness of the domestic steel industry.
