Coal India Limited has announced plans to invest ₹3,300 crore to set up eight new coking coal washeries, aimed at enhancing coal quality and strengthening domestic supply for the steel sector.
The proposed facilities will add 21.5 million tonnes per year (MTPA) of washing capacity and are targeted for commissioning by FY2030. This expansion will significantly augment the company’s current infrastructure, which includes 10 operational washeries with a combined capacity of 18.35 MTPA.
The new washeries will be developed across key subsidiaries, with five units under Central Coalfields Limited (CCL) contributing 14.5 MTPA, and three units under Bharat Coking Coal Limited (BCCL) adding 7 MTPA. These regions account for a major share of India’s coking coal production.
In addition to capacity expansion, the company has earmarked ₹300 crore for modernisation and refurbishment of existing washeries, aimed at improving efficiency, recovery rates, and overall performance of current assets.
The move is driven by the need to address high ash content in domestic coking coal, which typically ranges between 25% and 45% and limits its direct use in steelmaking. Enhanced washing capacity will improve coal quality, making it more suitable for metallurgical applications.
The initiative is expected to support efforts to reduce dependence on imported coking coal, strengthen domestic supply chains, and ensure more reliable raw material availability for India’s expanding steel industry.