Shares of Coal India Ltd (CIL) were trading in the green and 1% higher on 27 March after the company announced an investment of approximately Rs 3,300 crore in eight new coking coal washeries to increase coal quality and reduce import dependence.

The new washeries, with a total capacity of 21.5 million tonnes per year, are projected to be operational by FY2030, according to a press release from the state-run miner.

Central Coalfields Ltd would put up five washeries with a capacity of 14.5 MTY, while Bharat Coking Coal Ltd would create three units with a capacity of 7 MTY each.

The extension will add to CIL’s existing network of ten coking coal washeries, with a total capacity of 18.35 MTY.

In addition, the business would invest approximately Rs 300 crore in renovating and modernising its current washeries to boost efficiency and utilisation.

Coal India stated that the measure is intended to improve the quality of domestic coking coal, which normally has a greater ash level, while also lowering dependency on imports, which is a critical ingredient in steel making.

The corporation is also looking into monetising three older, non-operational washeries in accordance with the National Monetisation Policy, having previously monetised one such asset. 

Furthermore, CIL is cooperating with Tata Steel to increase the supply of high-quality coking coal to the local steel sector.

The business stated that these actions are likely to assist substitute imports, minimise foreign exchange outflows, and boost the competitiveness of the domestic steel industry.

At 3:30 pm, the shares of Coal India closed 0.32% higher at Rs 445.10 on N/SE. 

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