coal washeries

Thursday, December 16, 2004

Lok Sabha

The Government is encouraging washing of coal in the private sector washeries. These washeries are to be set up on Build-own-Operate (BOO) basis. Coal India Limited (CIL), through global bidding, has selected private entrepreneurs to set up non-coking coal washeries at various locations for supply of washed coal mainly to thermal power stations. Negotiations are in progress to finalise the agreement with private operator to set up a washery of 6 million tonnes (MT) per annum throughput capacity at Dipka, South Eastern Coalfields Limited for supply of washed coal to MSEB.

CIL had offered its consumers as well as private entrepreneurs to set up non-coking coal washeries for supply of washed non-coking coal mainly to thermal power stations. It has offered land and other infrastructure facilities to its consumers on lease/chargeable basis to set up washeries either by themselves of through private entrepreneurs under BOO scheme. Two washeries under such scheme have been set up in Korba coalfields on CIL's land and are in operation for supply of washed coal to the linked consumers. CIL has also allotted land to state power utility for setting up a washery under BOO scheme. CIL's initiative to act a facilitator to set up non-coking coal washeries has also attracted many investors.

This information was given by the Minister of State for Mines, Dr. Dasari Narayana Rao in a written reply in the Lok Sabha today. Replying to a question on high percentage of ash content in the coal supplied to the consumers the Minister said that the coal supplied to the various consumers by the subsidiary companies of CIL do not contain high ash percentage. The ash percentage of non-coking coal supplied by the subsidiary companies of CIL varies between 18 per cent to 40 per cent approximately. The coal washeries would help the consumers i.e. thermal power stations, cement plants and sponge iron plants to get washed coal of required quality to the extent possible subject to techno economical viability of washing the coal. However, some thermal power stations are supplied washed coal with ash content ranging between 33 to 34 per cent.