Coal India to invest Rs 3,300 crore in 8 coking coal washeries, Rs 300 crore for upgrades

Coal India will invest about Rs 3,300 crore to set up 8 new coking coal washeries as part of a broader push to improve coal quality and reduce import dependence, the company said on Friday.

The washeries, with a combined capacity of 21.5 million tonnes per year (MTY), are expected to be operational by FY30. This will add to the company’s existing network of 10 washeries with a cumulative capacity of 18.35 MTY.

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In addition, the state-run miner will invest around Rs 300 crore in the renovation and modernisation of its existing coking coal washeries to improve efficiency and utilisation.

Of the eight new facilities, five with a total capacity of 14.5 MTY will be set up under Central Coalfields Limited, while three with 7 MTY capacity will come up under Bharat Coking Coal Limited.

The expansion and modernisation plan is aimed at improving the quality of domestic coking coal and moderating India’s reliance on imports over the medium term.

The company is also pursuing monetisation of older assets in line with the National Monetisation Pipeline. After monetising one coking coal washery at Bharat Coking Coal, it plans to monetise three more non-operational units.

Separately, Coal India is undertaking renovation and modernisation of two ageing washeries to improve throughput, recovery efficiency and process reliability.

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In a public-private partnership model, the miner 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.

Coking coal is a key raw material in steelmaking. However, domestic reserves are limited and typically have high ash content—ranging between 25% and 45%—necessitating imports.

The company said the combined initiatives are expected to help substitute imported coking coal, reduce foreign exchange outgo and enhance industrial competitiveness.

Coal India share price was trading 0.4% higher to Rs 445.45, as of 1:03 pm, as per exchanges.