As part of its effort to improve coal quality and decrease dependence on imports vital for steel production, Coal India Limited stated on Friday that it will invest approximately ₹3,300 crore to establish eight new coking coal washeries.
We aim to commission the proposed washeries by FY30. Their total capacity is 21.5 million tonnes per year (MTY). This project represents a substantial scaling up of beneficiation infrastructure, since it will more than quadruple Coal India’s present washing capacity of 18.35 MTY over 10 existing facilities.
Furthermore, ₹300 crore has been set aside by the corporation to renovate and upgrade the current washeries in order to enhance operating efficiency, recovery rates, and throughput.
Between the two companies, Central Coalfields Limited will build five units with a combined capacity of 14.5 MTY, and Bharat Coking Coal Limited will establish three units with a capacity of 7 MTY.
In addition, Coal India intends to monetise further non-operational washeries as a result of a previous deal, thereby pushing asset monetisation under the National Monetisation Pipeline.
The partnership between the two companies will increase the domestic supply of high-grade coking coal by utilising Tata Steel’s washing capacity and technological knowledge.
Coking coal is still an essential component of steelmaking, although historically, imports have been required due to the high ash percentage (between 25% and 45%) in native deposits. As a result of these measures, the domestic steel sector in India should become more competitive, and Coal India’s reliance on imports should decrease.
