Coal washing in India grew at a CAGR of more than 17% over the past five years from 2006-2011. It is predicted that it will grow at a CAGR of more than 25% in coming ﬁve to seven years. Currently, coal washing accounts for nearly 20% of the total production of coal in India and lags behind the global scenario with a margin of almost 25%. This indicates a huge scope of coal washing in India and further the declaration on of CIL to have integrated coal washeries in all upcoming coal mining projects of more than 2.5 MT capacities, which adds extra mileage for this segment for further growth. CIL has been in the forefront in developing coal washeries; however, due to man power constraints coupled with cost of the operation, it has decided to outsource this operation to private players in BoM basis.
It has planned for international competitive bidding to develop 22 coal washeries in different parts of India. 66 players have evinced their interest to develop coal washeries for the ﬁrst phase (11 coal washeries) of competitive bidding. It has earmarked a whopping INR 5,000 Crores for coal washery development to increase the current capacity of 120 MTPA to 250 MTPA in coming four years of time.
In order to assess the financial benefits of coal washing in terms of freight savings, power plant savings, accumulated savings in terms of avoidable environmental cost and evaluation of financial & economic viability of the coal washing operation , ENINCON is coming up with an opportunity tracker on coal washing practice in India.
Key Queries Resolved
- What would be the associated economics and sustainable business model for coal washing in India?
- What are the financial benefits of coal washing in India?
- What would be the investment opportunity for private players in coal washing in India?
- What would be key value chain wise market of washed coal in India?