The washeries, with a combined capacity of 21.5 million tonnes per year (MTY), are expected to be operational by FY2030, the company said.
The upcoming facilities will be in addition to the 10 coking coal washeries already operated by CIL, which together have a cumulative capacity of 18.35 MTY. The company will also invest around Rs 300 crore towards renovation and modernisation of its existing washeries to enhance efficiency and utilisation.
Of the eight new units, five washeries with a capacity of 14.5 MTY will be set up under Central Coalfields, while the remaining three, with a capacity of 7 MTY, will come up under Bharat Coking Coal.
CIL said the calibrated expansion and modernisation drive is aimed at improving the quality of domestically produced coking coal and reducing reliance on imports over the medium term.
The company has already monetised one coking coal washery under Bharat Coking Coal and plans are underway to monetise three additional older, non-operational washeries in line with the National Monetization Policy. It is also undertaking renovation and modernisation of two ageing washeries to improve throughput, recovery efficiency and process reliability.
In a public-private partnership model, CIL is collaborating with Tata Steel Limited to leverage washing capacity and technical expertise, aiming to boost the supply of quality coking coal to the domestic steel industry.
Coking coal is a key raw material in steel production. However, domestic reserves are limited and typically have high ash content of 25–45%, significantly higher than global benchmarks, necessitating imports.
The company expects that these initiatives will help substitute imported coking coal, reduce foreign exchange outgo, and enhance the competitiveness of India’s steel sector.
State-run Coal India is mainly engaged in mining and production of coal and also operates coal washeries. The major consumers of the company are the power and steel sectors. Consumers from other sectors include cement, fertilizers, and brick kilns.
On a consolidated basis, Coal India (CIL)'s net profit declined 15.85% to Rs 7,157.45 crore while net sales declined 4.76% to Rs 30,818.17 crore in Q3 December 2025 over Q3 December 2024.
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