Eight new coking coal washeries with 21.5 MTPA capacity in pipeline; output rises to 66.47 MT
coking coal washeries
with a combined capacity of 21.5 million tonnes per annum (MTPA) are being set up across Jharkhand and West Bengal as part of the government's efforts to boost domestic supply and cut imports for the steel sector, the coal ministry said.
In a written reply in the Rajya Sabha, Union Minister of Coal and Mines G. Kishan Reddy said the washeries — at Bhojudih (2.0 MTPA, West Bengal, FY2025-26), Patherdih II (2.5 MTPA, Jharkhand, FY2026-27), New Moonidih (2.5 MTPA, Jharkhand, FY2028-29), Dhori (3.0 MTPA, Jharkhand, FY2029-30), New Kathara (3.0 MTPA, Jharkhand, FY2028-29), New Rajrappa (3.0 MTPA, Jharkhand, FY2029-30), Basantpur-Tapin (4.0 MTPA, Jharkhand, FY2028-29) and New Sawang (1.5 MTPA, Jharkhand, FY2028-29) — are at various stages of construction, tendering or contract award.
The projects are part of '
Mission Coking Coal
' launched in August 2021 to raise domestic production and reduce import dependence. Coking coal output has increased from 44.79 MT in 2020-21 to 66.47 MT in 2024-25.
Coal India Ltd
(CIL) has offered 11 discontinued coking coal mines to the private sector under a revenue-sharing model and commissioned the New Madhuband Coking Coal Washery of Bharat Coking Coal Ltd (BCCL) in 2023-24 with a capacity of 5 MTPA.
The tenure of coking coal linkages in the Non-Regulated Sector (NRS) linkage auction policy, amended in 2020, has been extended to up to 30 years. A new sub-sector — 'Steel using Coking coal through WDO route' — created in March 2024 under the NRS linkage auctions is expected to increase domestic consumption and availability of washed coking coal.
Coal PSUs follow policies issued by the ministry for transparent allocation, including the New Coal Distribution Policy (NCDP), the Scheme for Harnessing and Allocating Koyala Transparently in India (SHAKTI), the Linkage Auction Policy for NRS, Bridge Linkage Policy, Single Window Mode Agnostic Auctions, and linkage rationalisation. Supplies are made under Fuel Supply Agreements between coal companies and consumers.
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