Investment in coal washeries picks up steam

Indian Power Market ran an article regarding the carbon footprint of India in top 5 and its increasing reliance on coal for its power needs. It asked a question if coal washeries are the answer to India's need for quality coal. It seems like investment in coal washeries is picking up steam with Coal India investing in as many as 20 washeries. India has the largest deposits of coal in the world but most of it is not coking grade coal. Coking grade coal that is imported form Australia and Indonesia (and now from Russia) is 45-50% dearer and is usually blended with Indian coal. Coal washeries reduce the ash content of coal and make it suitable for combustion.

Coal India MD, Mr. Jha, said Coal India has planned 20 washeries at an investment of around Rs 2,500 crore, with a capacity of 111 million tons. However, the new plan will see Coal India now invest another Rs 3,500 crore on more washeries, said Jha. Out of the proposed 20 washeries, a small number will serve major clients that are far from the mines or production areas and customers who are small players close to the mines but have been left out, indicated Jha.

Coal India has already floated tenders for five of the washeries and work has been awarded for three washeries. Out of the three with work clearances, one has already attained environmental clearance as well. These 20 washeries will be set up over a period of 2.5-3 years. industry estimates have placed coal washeries to be a $5 billion opportunity in India.