The Maharatna company 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.
N C Jha, CMD, Coal India, said the company has planned 20 washeries at an investment of around Rs 2,500 crore, with a capacity of 111 MT. “Now we plan to invest another Rs 3,500 crore on more washeries.”
Of the 20 already proposed, a few will cater to big customers who are far away from the mines or production areas, customers, who are small players who are close to the mines have been left out. To cater them the new washeries have been proposed, said Jha.
So far tenders for five have been floated and work has been awarded for three washeries, one recently got environment clearance. These 20 washeries will be set up over a period of 2.5-3 years, said Jha.
He noted, the company produces 431 million tonnes currently, of which 10 per cent are sold through e-auction barring rest has to be washed and sold. According to Jha, through washing the company supply quality coal to the customers, since it will have 7-8 per cent of Ash rejection.
He added, these washieries would help the company increase the quality of coal which the company offers and will also help get better prices.
According to Jha, the company’s products are 50 per cent cheaper than imported coal and CIL has the scope to increase the price.
More From This Section
According to industry estimates coal washeries are estimated to be a $5 billion opportunity in India. According to Jha, the present capacity for washing coal in the country is 130 MT, mostly with the private operators, and utilisation is around 40 per cent only.
Coal India projects are to come in the states of Assam, West Bengal, Jharkhand, Orissa, Chhattisgarh, Maharastra, Uttar Pradesh and Maharastra. The company has also decided to set up washeries at new plants for a capacity above 2.5 MT.
“We will set up these projects under built, operate and maintain model. We are also looking for partner who will bring technology,” said Jha.