Coal India plans ₹3,300 crore capex for 8 new coking coal washeries

Coal India Ltd (CIL) on Friday, March 27, said it would invest around ₹3,300 crore to set up eight new coking coal washeries to improve coal quality and reduce import dependence.The new washeries, with a combined capacity of 21.5 million tonnes per year, are expected to be operational by FY2030, the state-run miner said in a press release.

Of the total, five washeries with a capacity of 14.5 MTY will be set up under Central Coalfields Ltd, while three units with a capacity of 7 MTY will be developed under Bharat Coking Coal Ltd.
Read more: Coal India to divest 25% stake in South Eastern Coalfields via IPOThe expansion will add to CIL’s existing network of 10 coking coal washeries, which have a cumulative capacity of 18.35 MTY.
In addition, the company will invest about ₹300 crore towards renovation and modernisation of its existing washeries to improve efficiency and utilisation.Coal India said the move is aimed at enhancing the quality of domestic coking coal, which typically has higher ash content, and reducing reliance on imports — a key input for steel manufacturing.

The company is also exploring the monetisation of three older, non-operational washeries in line with the National Monetisation Policy, after having monetised one such asset earlier.

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Further, CIL is collaborating with Tata Steel to leverage washing capacity and technical expertise to boost the supply of quality coking coal to the domestic steel sector.

The company said these initiatives are expected to help substitute imports, reduce foreign exchange outgo, and improve the competitiveness of the domestic steel industry.

Shares of Coal India were trading 0.78% up at ₹447.15 as of 2.04 pm on Friday. The stock has gained nearly 12% over the past 12 months.