Coal Shortage | CIL plans to set up 9 more washeries with a capacity of 30 MTPA

With a plan to reduce coking coal import and enhance production substantially, Coal India Limited is planning to set up and operationalise nine more new washeries with a capacity of 30 MTPA (Million Ton per annum).

Currently, the domestic raw coking coal washing capacity is about 23 MT per annum including 9.26 MT of the private sector.

“With setting up of new washeries, it is estimated that CIL will be able to supply about 15 MT of washed coking coal to the steel sector, thereby reducing import of coking coal,” the Coal Ministry said in a statement.

The government said that the need to set up more washeries to enhance capacity to meet the fast increasing demand of coking coal in the country. During FY22, CIL supplied 1.7 MT washed coking coal to the steel sector and has set a target of 3.45 MT during FY23.

The Ministry of Coal has auctioned 10 coking coal blocks to the private sector with a PRC of 22.5 MT during the last two years.

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According to the release, these blocks are expected to start production by 2025. “The Ministry has also identified four coking coal blocks and the Central Mine Planning and Design Institute (CMPDI) also will finalize GR for 4 to 6 new coking coal blocks in the next two months. These blocks may be offered in subsequent rounds of auction for private sector to further step up domestic raw coking coal supply in the country,” the ministry said.

Apart from this, by FY25, CIL has planned to increase raw coking coal production from existing mines up to 26 MT and identified nine new mines with PRC of about 20 MT. Out of the total 20 discontinued mines, CIL has offered six discontinued coking coal mines on an innovative model of revenue sharing to the private sector with expected PRC of about 2 MT.

The Coal Ministry opines with the news measures taken under ‘Atmanirbhar Bharat’ initiative, domestic raw coking coal production is likely to reach 140 MT by 2030.

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