Coal India Eyes Monetisation of Washeries Amid Diversification Efforts

State-owned Coal India Ltd (CIL) is exploring the monetisation of four old washeries by leasing them out, coupled with long-term coal supply agreements. The company is also diversifying its portfolio, enhancing coking coal beneficiation, and setting up new washeries in various subsidiaries to boost production.

State-owned Coal India Ltd (CIL) is taking steps to monetise its four old washeries by leasing these assets, alongside long-term coal supply agreements.

This move aims to optimise utilisation of assets while enabling diversification within the company's portfolio. "We are exploring the monetisation of four old washeries," CIL said in an official report.

Apart from monetisation efforts, CIL, which accounts for over 80 percent of domestic coal output, is broadening its horizons by establishing a non-coking coal washery at Mahanadi Coalfields Ltd (MCL). The company has also set up three new washeries at Bharat Coking Coal Ltd (BCCL) and is planning additional ones at Central Coalfields Ltd (CCL) to enhance its coking coal beneficiation capacity.

Currently, CIL operates 12 washeries with a combined capacity of 29.35 million tonnes annually. In 2023-24, the company's coking coal washeries produced approximately 2.26 million tonnes of washed coal, highlighting a 4.8% year-on-year growth. With a production target of one billion tonnes by 2025-26, CIL produced 773.6 MT of raw coal in FY24, compared to 703.2 MT in FY23.

(With inputs from agencies.)