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Coal India proposes Rs 3,500 cr investment in washeries

04 May 2011 Evaluate

Coal India Ltd has lined up another set of new investments for setting up coal washeries. The public sector company which planned around Rs 2,500 crore earlier for setting up washeries is now planning to invest another Rs 3,500 crore. Initially, the company has planned 20 washeries at an investment of around Rs 2,500 crore, with a capacity of 111 MT.

The company produces 431 million tonnes of coal currently, of which 10 per cent are sold through e-auction barring rest has to be washed and sold. These washeries would help the company increase the quality of coal due to 7-8% ash rejection and will also help get better prices.

According to industry estimates coal washeries are estimated to be a $5 billion opportunity in India. The present capacity for washing coal in the country is 130 MT, mostly with the private operators, and utilization is around 40 per cent only. Coal India projects are to come in the states of Assam, West Bengal, Jharkhand, Orissa, Chhattisgarh, Maharashtra, Uttar Pradesh and Maharashtra. The company has also decided to set up washeries at new plants for a capacity above 2.5 MT.

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