Coal India Expands Washing Capacity With ₹3,300 Crore Push For Domestic Coal Quality

Coal India Ltd. (CIL) has announced plans to invest approx. ₹3,300 crore to establish eight new coking coal washeries to improve coal quality and reduce reliance on imports. The state-run miner disclosed that the new facilities will have a combined capacity of 21.5 million tonnes per year (MTY) and are expected to become operational by FY2030.

Coking coal, a key raw material in steel production, is currently imported in large quantities due to quality limitations. By expanding its washing infrastructure, the company is planning to strengthen the domestic steel value chain.

Project Allocation Across Subsidiaries

The development of the new washeries will be split between two of CIL’s subsidiaries. Five washeries, with a combined capacity of 14.5 MTY, will be set up under Central Coalfields Ltd. The remaining three units of 7 MTY capacity will be developed by Bharat Coking Coal Ltd.

This targeted allocation will ensure efficient execution and optimal utilisation of coal reserves.

How Is Coal India Strengthening Its Existing Infrastructure?

In addition to the new projects, CIL will invest around ₹300 crore in the renovation and modernisation of its existing washeries. The company currently operates 10 coking coal washeries with a cumulative capacity of 18.35 MTY.

The modernisation effort is expected to improve operational efficiency, increase utilisation rates, and enhance output quality. This dual approach, that is, expansion alongside upgrades, positions the company to maximise returns from both new and existing assets.

What Is The CIL Monetisation And Strategic Collaboration?

CIL is exploring the monetisation of three older, non-operational washeries under the government’s National Monetisation Policy. Previously, the company had already monetised one such asset.

Moreover, CIL is joining hands with Tata Steel to leverage washing capacity and technical expertise. This partnership is expected to further enhance the availability of high-quality coking coal for domestic steel producers.

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How Did The Share Perform After The Announcement?

Coal India Shares were trading 0.78% higher at ₹447.15 as of midday trading on Friday. The stock has recorded a gain of nearly 12% over the past year. Thus, reflecting steady investor confidence in the company’s growth strategy and operational initiatives.

Sources

CNBC

Business Standard

The Hindu