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

By Kotak News Desk
|
07 Apr 2026 at 2:47 PM IST
|
Market News
|
4m

Stay updated with the latest stock market developments and trends.

You can set Kotak Neo as a preferred source to receive regular market updates.

Summary

To tackle quality and imports together, Coal India is planning to expand its washing capacity by adding 8 more coking coal washeries.

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.

Also Read - Pre-Market 30 March 2026: What To Expect After The Nifty Slips Below 23,000

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

This article is for informational purposes only and does not constitute financial advice. It is not produced by the desk of the Kotak Securities Research Team, nor is it a report published by the Kotak Securities Research Team. The information presented is compiled from several secondary sources available on the internet and may change over time. Investors should conduct their own research and consult with financial professionals before making any investment decisions. Read the full disclaimer here.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Brokerage will not exceed SEBI prescribed limit. The securities are quoted as an example and not as a recommendation. SEBI Registration No-INZ000200137 Member Id NSE-08081; BSE-673; MSE-1024, MCX-56285, NCDEX-1262.

About the Author