Coal India Limited (CIL) on Friday (27 March 2026) announced plans to set up eight new coking coal washeries with an estimated capital outlay of ₹3,300 crore, aimed at improving domestic coal quality and reducing import dependence.
In a regulatory filing to the exchanges, the company said the washeries are expected to be operational by FY2030 and will add a combined washing capacity of 21.5 million tonnes per year (MT/Y).
This expansion will supplement the existing ten washeries currently operated by CIL, which have a cumulative capacity of 18.35 MT/Y.
Out of the proposed eight washeries, five will be developed under Central Coalfields Limited with a capacity of 14.5 MT/Y, while three will be set up under Bharat Coking Coal Limited with a capacity of 7 MT/Y.
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In addition to the new projects, CIL will invest ₹300 crore towards the renovation and modernisation of existing coking coal washeries to improve efficiency, recovery rates and process reliability.
The company also indicated plans to monetise three older, non-operational washeries in line with the National Monetization Policy. This follows the monetisation of one washery in Bharat Coking Coal Limited last year.
CIL is also collaborating with Tata Steel Limited under a public-private partnership model to leverage additional washing capacity and technical expertise, aimed at enhancing the supply of quality coking coal to the domestic steel sector.
Coking coal is a critical raw material in steel production. However, domestic reserves are limited and typically contain high ash content ranging between 25 per cent and 45 per cent, significantly higher than global standards. This necessitates imports to meet quality requirements.
The company said the synergy of these efforts results in substitution of imported coking coal, reduction in forex outgo, and increased industrial competitiveness.
