Boost coal supply with added capacity of 111 million tonne
Coal India (CIL) is likely to spend up to Rs 2,327 crore over the next few years to set up 20 coal washeries across the country. This is expected to allow the mining major to offer more than half of its total coal production after being washed, thereby bringing down the transportation cost as well as the environmental impact of burning the fuel.
For the first phase, CIL has invited Request for Qualification (RFQ) bids from firms to establish 20 washeries with a total capacity of 111 million tonnes per annum under a Build-Operate-Maintain (BOM) basis for supply of washed coal to consumers identified by subsidiary firms. Sources said that this could cost the miner about Rs 2,327 crore.
“Since Indian coal is of an inferior quality, we are looking at setting up washeries in large numbers. By 2016-17, we are projecting that 350 million tonnes out of the total production of 650 million tonnes will be washed,” CIL Chairman Partha S Bhattacharyya said.
While imported coal has a gross calorific value (GCV) in the range of 6000Kcal/kg and ash content between 8 and 10 per cent, domestic coal has an average GCV of 3500-4000 Kcal/kg and ash content of 30-50 per cent.
The low GCV and high-ash content of Indian coal has an impact on primary consumers such as the power and steel sector, which has to either make their own arrangement for coal beneficiation or procure the expensive imported variety.
Of CIL's seven coal producing subsidiaries, new washeries through the BOM route are expected to be commissioned in all, except Northern Coalfields Limited (NCL), by 2011-12. The miner or its subsidiaries will provide the capital cost for setting up of washeries, along with other infrastructural facilities such as land, water and power.
More From This Section
On the environmental front, supply of uniform size and quality of coal to power stations will result in lower emissions and reduction in the production of fly ash from the generation process. Moreover, the reduction in ash content and increase in GCV will also translate into lesser quantity of coal being transported to meet specific power generation demands.
Analysts feel investment in setting up washeries is a requirement, especially since the Ministry of Environment and Forests stipulates that power stations situated more than 1000 km away from coal mines are required to use coal with ash content not exceeding 34 per cent.
“The improvement in fuel quality will have its advantages. With the use of washed coal, generation firms will consume less fuel and there will be reduction in coal handling costs,” an analyst added.