Coal India Unveils ₹3,300 Crore Capital Expenditure Plan

Coal India Aims to Boost Coking Coal Capacity and Reduce Imports

Key Highlights

• ₹3,300 crore investment planned for eight new coking coal washeries
• 21.5 million tonnes annually (MT/Y) increase in total washing capacity by FY2030
• ₹300 crore allocated for refurbishment and modernization of existing washeries

Infrastructure Expansion

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Coal India plans to establish eight new coking coal washeries, with five under Central Coalfields and three under Bharat Coking Coal Limited. The new facilities are expected to increase the company's total washing capacity by 21.5 MT/Y, enhancing processing capabilities. The current infrastructure consists of ten operational washeries with a total capacity of 18.35 MT/Y.

Asset Monetization and Modernization

Coal India is focusing on the monetization of its assets, including the successful monetization of one washery under Bharat Coking Coal Limited. The company aims to monetize three older, non-operational washeries in accordance with the National Monetization Policy. Additionally, it is modernizing two outdated washeries to improve recovery rates and operational dependability.

Public-Private Partnerships

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Coal India is partnering with Tata Steel Limited to implement advanced washing technologies and improve the quality of coking coal supplied to the domestic steel industry. This collaboration aims to enhance outcomes and reduce reliance on imports.

Impact on the Steel Industry

The initiatives aim to enhance coal quality, reduce reliance on imports, and bolster the competitiveness of India's steel industry. Coking coal is an essential raw material for producing steel, and India's local reserves are constrained, generally possessing a high ash content varying from 25% to 45%.

Market Performance

Coal India share price today opened at ₹444.05 apiece on the BSE, touching an intraday high of ₹448.40 and an intraday low of ₹441.10. The coal index has corrected by around 5% this week, snapping its five-week winning streak.